The Hungarian base rate of 6.5%, which is still high in international terms, is the primary reason for the strengthening, and the international environment is now also supportive, Portfolio adds.

A 25-basis-point cut in the interest rate by the US Federal Reserve is already priced in for Wednesday, and the declining US interest rate points to a further weakening of the dollar, while with inflation above 4% in Hungary, the MNB cannot even consider an interest-rate cut for the time being.

If the dollar starts to weaken again, it could even give the forint a boost, Portfolio adds.

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