On Tuesday, the forint reached a historic low of HUF 379.70 to the Euro. The Hungarian forint already reached a new historic low on Monday, valued at 372.21 to the Euro, but its devaluation has not stopped there. It started plummeting last Thursday, minutes after Russian forces began their invasion of Ukraine. By the afternoon the currency had gone from HUF 360 to 370, stabilized a bit over the weekend, then started dropping again on Monday.
Investors are worrying over the war between Russia and Ukraine and the sanctions on Russia, which is having noticeable impacts on the global economy. According to Hvg, anyone trying to play it safe is turning their investments to euros, dollars, or even gold.
The devaluation of the forint continued on Tuesday, reaching a new low of HUF 379.70 to the Euro. But the forint is not the only currency that has been hit. The US dollar is the only currency against which virtually every other currency, including the Euro, has fallen. It has been suggested that the US Federal Reserve may need to take action in stabilizing global markets.
Western sanctions on Russia aim to stop its central bank from using foreign reserves to keep the ruble afloat, as well as excluding some Russian lenders from the Swift messaging system. The Russian currency has dropped by almost 30 percent to the dollar.
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