Weak Forint: Still Vulnerable Compared to Other Regional Currencies
The Hungarian forint has shown strength against major currencies in international foreign exchange trading. According to the recent report from World economy, the forint is stronger compared to the previous evening.
At 7am on Tuesday morning, the euro was quoted at HUF 381.59, down from HUF 381.63 on Monday. Similarly, the US dollar fell to HUF 357.24 from HUF 358.52, and the Swiss franc dropped to HUF 401.07 from 401.92.
The forint has experienced a significant increase in value in recent months. At Tuesday morning’s quotation, it is 1.9% stronger against the euro, 3.0% stronger against the dollar, and 0.4% stronger against the Swiss franc compared to the start of October. Compared to the beginning of the year, the forint is 4.5% stronger against the euro, 4.3% stronger against the dollar, and 0.6% stronger against the Swiss franc.
Analysts predict that the forint may end the year at or above the HUF 390 level against the euro. Factors that may influence the EUR-HUF exchange rate include the Hungarian National Bank’s interest rate policy, international energy prices, and the arrival of EU funds.
However, some experts have expressed concerns about the forint’s vulnerability. Tivadar Zakár, CEO of Univerz Invest Zrt., and the majority of analysts predict a deterioration in the forint’s value. They believe that despite the significant strengthening in the first half of the year, the recessionary Hungarian economy and inflation are not favoring the forint.
Overall, the forint’s performance in the foreign exchange market remains subject to various factors, and analysts will closely monitor its fluctuations in the coming months.
Via Világgazdaság, Featured image: Pixabay
