No drastic change is expected, argue the economic analysts.Continue reading
The Hungarian forint strengthened against the major currencies in international foreign exchange trading on Tuesday morning compared to the previous evening, Világgazdaság reports.
The euro was quoted at HUF 381.59 at 7am on Tuesday morning, down from HUF 381.63 on Monday, while the US dollar fell to HUF 357.24 from HUF 358.52 and the Swiss franc to HUF 401.07 from 401.92.
At Tuesday morning’s quotation, the forint is 1.9 percent stronger against the euro, 3.0 percent stronger against the dollar, and 0.4 percent stronger against the Swiss franc than at the start of October. Compared to the beginning of the year, the forint is 4.5 percent stronger against the euro, 4.3 percent stronger against the dollar, and 0.6 percent stronger against the Swiss franc.
As Világgazdaság reported earlier,
the forint may end this year at or above the HUF 390 level against the euro, based on analyst consensus.
The results of the survey, conducted with seven Hungarian investment experts, show that the EUR-HUF exchange rate could be influenced by a number of external and internal factors in the last four months of the year. However the main factors that could affect the exchange rate are the Hungarian National Bank’s (MNB) interest rate policy, international energy prices, and the arrival of EU funds.
Domestic investment experts were asked how the EUR-HUF cross rate could evolve at the end of the year, given the likely tight interest rate policy of the MNB, which is expected to move to data-driven operations soon. Tivadar Zakár, CEO of Univerz Invest Zrt., the Budapest Stock Exchange’s appointed advisor, and the majority of analysts, predicted a deterioration in the forint. The advisor pointed out that the forint seems to be more vulnerable than the regional currencies, even after the significant strengthening of the exchange rate in the first half of the year.
The market has also accepted the MNB’s data-driven interest rate policy, but the recessionary Hungarian economy and inflation are not easing the forint’s situation,”
the expert added.
Via Világgazdaság, Featured image: Pixabay