The Hungarian forint’s newest historical low against the dollar

The dollar has never been worth so much to the forint: the weak Hungarian currency has broken another record.

Although the national bank raised interest rates by a massive amount on Tuesday, this did little to help the forint’s exchange rate. The forint weakened spectacularly against both the dollar and the euro in Wednesday morning’s foreign exchange trading.

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The dollar crossed the previous high of 428.836 forints several times in the morning, and strengthened above the 430 level shortly after 10.30 AM. The new historic high was first 430.141 forints and then 430.844 forints. From there, the price first rose to 431.39 forints and then to above 431.8 forints. This now represents a 1.65 percent weakening of the forint since the morning.

The dollar has been soaring against the forint in recent days, Telex reports. It is only ten days since it first crossed the 400 forint level, and since then the forint has weakened by about 8 percent against the US currency. A year ago, it was only 305 forints, but now it is 40 percent more expensive than that.

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Source: Telex, Index