The Hungarian forint was doing extremely well in the last few days of 2022. The dollar went as low as HUF 372 and one euro even cost HUF 398. However, the new reality is different.
The forint started Tuesday weakening against the leading currencies. It fell from around 402 against the euro in the early hours to 404. The depreciation against the dollar was even greater.
According to Portfolio, the forint weakened against the leading currencies in the morning. The euro/forint exchange rate was close to 403.5 from 402 in the morning. The domestic currency fell 0.5 percent against the euro this morning.
The fall against the dollar is even bigger: the USD/HUF exchange rate fell from 378 to 381. It has already lost more than 1 percent against the dollar.
The forint fell further before half past nine. The EUR/HUF exchange rate was at 404.2, down nearly 0.7 percent intraday for the forint. The USD/HUF was hovering above 382, down 1.4 percent.
At noon, the forint climbed to 403 against the euro, but it was still 0.4 percent weaker than yesterday. However, the forint continued to weaken against the dollar, with the rate now at 383, down 1.7 percent.
Much of the weakening is linked to the strengthening of the dollar, Portfolio writes. The American currency has moved towards parity against the euro.