The Hungarian Forint fell to the weakest level compared to euro since January 2012, writes US economics site Bloomberg. Forint’s low interest rates left the currency vulnerable as the political crisis in Ukraine further escalates, and now the currency stands on 315.90 HUF per euro, says the article.
Bloomberg writes that yesterday’s fall of the Forint makes Budapest’s the worst performing currency in 24 emerging-markets, tracked by the company. The Hungarian Forint has slumped 5.8 percent this year as the National Bank of Hungary recently announced an unexpected 20 basis point cut, ending two-year long easing cycle. The reduction brought the rate down to a historical low of 2.10%, 40 basis points below Poland’s benchmark.
Szilard Buro, a Budapest-based foreign-currency analyst said to Bloomberg in a phone interview that “Hungary has the least resistance” after the rate cuts, and if the current trends continue, the currency could near 320 per euro. The region’s other currencies, such as the Polish zloty or the Czech koruna all fell as Ukraine expressed alarm about the build up of Russian military forces on its border.
via bloomberg, photo egrian