Hungarian forint outperforms peers in early 2025, boosting travel budgets

The Hungarian forint is off to a surprisingly strong start in 2025, gaining more than 3% against the euro and outperforming both the Polish zloty and the Czech koruna, according to a new assessment by K&H Bank’s chief analyst. With these currency movements, a rate of 392 forints to the euro could realistically be reached this summer: a prospect that benefits travellers, making foreign vacations significantly cheaper than many might expect.

The forint leads among emerging market currencies

According to Dávid Németh, chief analyst at K&H Bank, the Hungarian currency is not only strong within the Central European region but is also performing notably well on the international stage. While many emerging market currencies, such as the Romanian leu, Brazilian real, and South African rand, have weakened against the euro, the Hungarian currency has shown steady and gradual appreciation. This is partly due to the Hungarian National Bank maintaining high interest rates, making the forint more attractive to investors, according to a report by Economx. Additionally, Hungary’s current account balance remains in positive territory, further supporting the exchange rate.

Multiple factors behind the forint’s strength

The forint’s stability has held firm despite recent global tensions, such as the conflict between Israel and Iran and escalating trade disputes with the United States. These types of geopolitical events typically hurt emerging market currencies, but the Hungarian currency and its regional peers have proven more resilient this time. Economic indicators across the region are generally favourable, and the Middle East conflict has not triggered a significant shock in energy markets, both factors helping to maintain currency stability.