Hungarian Forint Plummets: Seeking Stability in Uncertain Times
The Hungarian forint is currently undergoing depreciation against major currencies, with the EUR/HUF exchange rate reaching 394 on Wednesday afternoon. This marks a significant weakening of the Hungarian currency, with the euro now costing HUF 394 and the US dollar costing HUF 362 on Thursday.
However, not all currencies in the region are experiencing the same trend. The Polish zloty, for example, is strengthening against the forint and has reached an all-time high. The Polish currency is now valued at almost HUF 91, which is the highest rate ever recorded. This surge in the zloty’s value may be attributed to the upcoming agreement on Polish EU funding.
An investor in Budapest, who chose to remain anonymous, shared with Reuters his prediction that the Hungarian forint will weaken further, reaching 395 against the euro within a month. This outlook is supported by the Hungarian National Bank’s decision to accelerate interest rate cuts, which is expected to further weaken the forint in the near future.
It remains to be seen how much further the Hungarian forint will depreciate and what impact it will have on the country’s economy. As investors and analysts closely monitor the situation, it is clear that the currency’s value is currently in a state of flux.
