Hungarian forint plummets, hits two-year low against USD
The Hungarian forint is facing significant challenges as it continues its downward spiral, hitting a two-year low against the dollar. Experts are predicting that the struggles of the forint could lead to prolonged economic challenges for Hungary, with the EUR/HUF exchange rate potentially weakening to 425 by spring 2025.
According to Forbes, the forint weakened further against the euro and reached a two-year low against the dollar, surpassing USD/HUF 406. The ongoing strength of the dollar against the euro, fueled by robust US economic growth and tariff policies, is expected to put pressure on emerging market currencies like the forint. Goldman Sachs predicts a further 5% strengthening of the dollar against the euro, further complicating the situation for the forint.
Looking ahead to 2025, experts predict that economic challenges in Hungary will persist, with the forint continuing to weaken. Blochamps Capital forecasts that the EUR/HUF exchange rate could fall to 425 by spring 2025, driven by limited flexibility in interest rate management and the forint’s weakness exacerbating inflationary pressures. The central bank faces a tough task in stabilizing the exchange rate in the next six months, as economic challenges and currency depreciation impact social and economic aspects of Hungary.
Overall, the future looks uncertain for the Hungarian forint, with measures needed to address the ongoing struggles and stabilize the currency for the benefit of the Hungarian economy.
