"Hungary's forint reacted by a minimal depreciation versus the euro to a downgrade by ratings agency Standard & Poor's on Monday. While EUR/HUF eased to over 269 for a few moments, it was only a 1 forint easing compared to pre-announcement levels.HUF eased to over 269 to the EUR briefly after the S&P downgrade announcement, which was also its intraday low so far. Prior to the news the forint was quoted at around 268 vs. the single European currency.
The HUF has been steady at around 268.20/80 ever since, which is attributable to the fact that following two recent downgrades by Fitch and Moody's a similar action by S&P was widely expected, especially since Hungary has been on Credit Watch with negative implications at the latter rating agency since 16 October.
Analysts made it clear last week after the Fitch downgrade that it would not take long for S&P to make its move."
Source: Portfolio Online Financial Journal
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18.11.2008