HUF Becomes Europe’s Fifth Weakest Currency

  • 7 Sep 2020 8:59 AM
  • Hungary Around the Clock
HUF Becomes Europe’s Fifth Weakest Currency
The forint is the fifth worst-performing European currency so far this year as it has weakened by some 8.5%, Portfolio reports.

The Hungarian currency slid to 361.5 against the euro on Friday before ending the day above 360.

Turkey, which is facing a currency crisis and Belarus saw their currencies depreciate by some 32% this year.

The forint has been the markedly weakest currency in the region this year, when the Polish zloty has fallen 4.6% and the Czech koruna by 3.9%.

Reasons for the sell-off cited by Portfolio include the central bank’s loose monetary policy and the severe economic downturn in the second quarter.

Investors also fear that the recent surge in new Covid-19 cases will further hit the economy, which points to a persistently loose monetary and fiscal policy.

The exchange rate of 360 is seen as crucial because the next technical level for the forint is its all-time low of 371.


MTI Photo

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Around the Clock

Since 1995 Hungary Around the Clock has proven to be one of the most comprehensive sources of daily English-language news about Hungary. It covers ongoing domestic politics and foreign relations, as well as business and economic matters. For a free trial of HATC visit www.hatc.hu and click on 'Free Trial Subscription’.

Explore More Reports

  • Forint & Stocks Rally On EU Budget Deal

    Forint & Stocks Rally On EU Budget Deal

    • 10 Dec 2020 8:49 AM

    News that Hungary and Poland agreed to proposals by the German EU presidency on averting a veto of the EU budget by the two countries lifted share prices on the Budapest Stock Exchange.

  • Forint Rallies After US Election

    Forint Rallies After US Election

    • 6 Nov 2020 11:24 AM

    The Hungarian currency, which was flirting with an all-time low just a week ago, appreciated sharply this week and staged a strong rally after the US election on Tuesday.

  • Forint Under Pressure Again

    Forint Under Pressure Again

    • 15 Oct 2020 9:07 AM

    The Hungarian currency shed 2% of its value against the euro this week due to fears of the economic impact of the second wave of the pandemic, HVG reports.