Missile attack against Poland sent the Hungarian forint plummeting again

The Hungarian national currency has been strengthening in the last few weeks thanks to some good news from Brussels regarding a possible EU-Hungary agreement and drastic measures implemented by the National Bank of Hungary. However, it seems the rockets that hit Poland yesterday evening did not only devastate lives or the sense of safety of the locals but also currencies.

The Hungarian forint started yesterday strong due to the weakening of the USD. The trend broke in the afternoon when news came about explosions in Poland, killing two and caused by probably a Russian missile. Experts agree that it is unlikely that Moscow would launch an attack against NATO with a single rocket. However, NATO member states highlighted the issue had to be carefully investigated, portfolio.hu wrote.

The Kremlin denied its involvement in what happened and blamed Ukraine for the missile attack.

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In any case, the Hungarian forint is very volatile to foreign or domestic reports. And one can imagine a few worse scenarios than a Russian missile hitting NATO territory and causing the deaths of NATO citizens, regardless of whether the “attack” was intentional or a mistake.

Therefore, the forint started plummeting yesterday evening. The HUF/EUR currency exchange rate increased to 414 (from 407). The process took only a few hours. Meanwhile, the Polish zloty also weakened.

After the first phase of falling, the Polish and Hungarian currencies were pulled back. But just for the short term. In the evening, both continued their lowering against the euro. At 11 pm yesterday, the rate of decrease stood at 0.3 percent in the case of the forint.

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Source: portfolio.hu