Hungary Forint At 3-Week Low vs. EUR
- 31 Mar 2010 3:00 AM
"Hungary’s forint has eased about 0.5% intraday against the euro on Tuesday, slumping to a nearly three-week low. Meanwhile, global investor sentiment is relatively mild and only the Czech koruna depreciated in the region, while Poland’s zloty firmed.
The HUF’s moderate weakening that started in the morning lasted even in the afternoon. From around 264.50, EUR/HUF eased to around 265.70 and then around 14:30 to 266.50.
A Budapest-based currency dealer told Portfolio.hu that punters are buying USD and PLN against the euro, but the Polish currency may be hit later on.
The HUF’s depreciation may also have to do with an IMF senior official’s remarks, saying the strength and appreciation of CEE currencies might not be such a good thing for recovery and competitiveness.
Partly due to the greenback’s marked strengthening versus the euro during the day, the forint eased to around 198.50 from around 196 to the USD. Against the Swiss franc it moved to 186 from around 185 in the morning.
As you can see in the chart below, the forint was last quoted at these levels vs. the EUR before HUF appreciation kicked in in mid-March.
The chart below shows that only the HUF weakened to the euro among CEE currencies over the past few days. It is also true, though that it was the forint that firmed sharply before that."
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