The Hungarian forint strengthened sharply against major currencies on Friday morning, after weakening over the previous week. Portfolio-Teletrader reported that EUR/HUF traded between 365 and 366 and USD/HUF around 327 in the morning session. The move followed a period in which the forint had been under pressure, a stretch that coincided with the presentation of the new budget.
Recent weakness and the budget backdrop
The forint had lost ground over roughly the previous week, partly because of turbulent international conditions. The currency had already gained considerably against leading currencies the day before.
Conditions abroad were mixed. The dollar index was roughly where it stood at the start of the week, oil prices remained high, and bond yields had partly recovered on weakness in the AI trade. Over the week the euro and the Japanese yen had weakened slightly against the dollar.
Data due the same day
European GDP and inflation figures and US business activity data were scheduled for release the same day. Hungary’s KSH reported third-quarter GDP growth of 0.1 percent quarter on quarter and 1.5 percent year on year, below expectations. France’s economy contracted unexpectedly in the third quarter, according to Bloomberg.
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Source: Portfolio-Teletrader
