Forint reaches multi-year highs against major currencies as salaries continue to rise
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The Hungarian forint has been strengthening steadily for several days, dipping below the 390 mark against the euro for the first time in quite a while. Against the US dollar, it has reached a three-and-a-half-year high, with exchange rates dropping below 330.
What’s behind the relative strength of the Hungarian currency? In short: a weakening dollar and stable interest rates. The key question is: how long can this last?
Meanwhile, average earnings in Hungary have seen a notable rise—though the median wage remains significantly lower.
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Forint holds near peak levels
By Tuesday morning, the forint’s exchange rate had changed little compared to Monday afternoon’s figures on international foreign exchange markets. As of 7 a.m. Tuesday, the euro was trading at 389.69 forints, slightly up from 389.33. The dollar stood at 330.93 forints, rising from 330.73, while the Swiss franc was at 416.90 forints, compared to 416.65.
Since early September, the Hungarian currency has strengthened by:
- 1.7% against the euro,
- 2.5% against the dollar,
- 1.7% against the Swiss franc.
Since the start of the year, it has gained:
- 5.3% against the euro,
- 16.7% against the dollar,
- 4.8% against the Swiss franc.
Below is a table of current early-afternoon exchange rates:
| Currency | HUF |
|---|---|
| EUR | 389.79 |
| USD | 330.62 |
| GBP | 450.54 |
| CHF | 417.34 |
| CNY | 46.46 |
How long can the forint remain strong?
Investors are factoring in a likely interest rate cut by the US Federal Reserve, while Hungary’s base rate remains unchanged. The dollar continues to lose ground against the euro, with the EUR/USD exchange rate now approaching 1.18, according to Tőzsdefórum.
Hungary’s benchmark interest rate was initially set high during a period of significant forint depreciation, in order to defend the currency. The peak came in August 2022 at 11.75%, but the rate has since fallen substantially to 6.5%. It has remained unchanged since September 2024, and the central bank—led by former Finance Minister Mihály Varga—reportedly has no plans for further cuts.
This stable and relatively high rate makes forint-denominated assets attractive to investors, especially as the US Federal Reserve’s rate hovers in the 4.25–4.5% range.
Click to browse our forint archive.
Credit rating agencies could pose a risk
The US Federal Reserve is due to announce its rate decision tomorrow, while the Hungarian National Bank is set to meet next Tuesday. Markets expect the latter to keep rates steady.
