Hungarian Forint Was Top Performer in August
- 6 Sep 2021 11:20 AM
- Hungary Around the Clock
The forint was the best-forming currency globally in August, a result of the MNB’s monetary tightening policy, Portfolio writes.
The MNB’s second rate hike in July convinced investors that it is serious about bringing down inflation, according to the business news website.
The central bank began a monetary tightening cycle at the June meeting, raising rates by 30 basis points, which was followed by identical hikes at the next two sessions.
The forint appreciated more than 2% against the dollar and the euro last month.
It has posted bigger monthly gains than this only five times in the past ten years.
As the forint has weakened some 0.8% this year, it would be well in the red without the particularly strong performance in August.
The next technical level to watch in the euro-forint pair is 345, which would be a one-year high.
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