The forint is still slightly weaker
There were no violent movements in the evening hours, but the weakening of the Hungarian currency continued: shortly before 10:30 a euro cost HUF 375.369, which is 1.2 points lower than the exchange at the beginning of the day.
Development of the EUR/HUF exchange rate
And the dollar is now at 348.377 after morning levels of 345.5.
Development of the USD/HUF exchange rate
Paging has started
The forint exchange rate against the euro was stuck at the level of 375.1 in the evening, which still means a weakening compared to 374.1 in the morning.
Development of the EUR/HUF exchange rate
The HUF is stuck
Compared to the euro, the forint was able to recover up to 375, but then got stuck in the band from this level to 375.5.
Development of the EUR/HUF exchange rate
In the case of the dollar, the closing lasted until 348, then the course started back in the direction of the 349 range.
Development of the USD/HUF exchange rate
Is the forint on the rise?
The hectic pace of the afternoon remained with the forint even as it turned into the evening: the exchange rate against the euro has now recovered to below 375, but the Hungarian currency has already bounced back once from its vigorous retreat.
Development of the EUR/HUF exchange rate
The strengthening of the forint exchange rate has faded
By late afternoon, the forint weakened again to the resistance of 376.5 against the euro, and the effect of the rapid strengthening after the interest rate decision practically disappeared.
Development of the EUR/HUF exchange rate
The momentum also ran out against the dollar, and against the American currency, the exchange climbed back up to 349.1.
Development of the USD/HUF exchange rate
Slowly, the forint fails to fully strengthen
Although the forint quickly worked off its losses in the morning after the interest rate decision, at a quarter past five in the afternoon, the euro was exchanged again above 376.
Compared to the dollar, the weakening started again, the exchange rate jumped from the previous level below 347 to above 348.2.
Development of the USD/HUF exchange rate
The moment is gone
The rapid strengthening of the forint began to disappear almost as quickly as the process started. The exchange rate is again above 375.1, which already shows a weakening of 0.25 in the case of the euro compared to the level at the beginning of the day.
Development of the EUR/HUF exchange rate
The forint has fallen
The forint weakened very quickly against the euro after the hesitancy after the interest rate decision, closing up to 374.1, before the strengthening stopped slightly and the exchange rate returned to the opening level of 374.2.
The forint initially reacted by strengthening
The Magyar Nemzeti Bank will reduce its key interest rate by 100 basis points from tomorrow, bringing the overnight deposit rate to 17%. The central bank already clearly hinted at easing last week, and the markets were also expecting a similar step to the one the central bank finally took on Tuesday.
The forint dropped from 376.5 to below 376 compared to the euro after the announcement, but since then it has already fallen a little, 15 minutes after the MNB’s decision, the exchange rate is at 376.3.
Development of the EUR/HUF exchange rate
The strengthening of the dollar does not help either
The American currency strengthened by 0.4% against the euro today, so the quote is below 1.08 again, which also does not help the forint in addition to the domestic interest rate decision.
Development of the EUR/USD exchange rate
For now, the forint is not moving
The base rate and the lower edge of the interest corridor remained unchanged, while the one-day lending rate was reduced by 100 basis points to 19.5% by the Monetary Council. The real question, however, is the fate of the benchmark interest rate, which can be revealed in the announcement at three o’clock. For now, the forint has hardly moved, the exchange rate of 376.3 is 0.65% higher than on Monday evening.
Development of the EUR/HUF exchange rate
Already over 377
By early afternoon, the HUF had weakened to 377.2, which is already 0.9 percent higher than Monday evening’s exchange rate. In the region, the Polish zloty is weakening by 0.1 percent, and the Czech crown is stagnant.
Development of the EUR/HUF exchange rate
The forint continues to fall
On Tuesday morning, the quotation of the euro rose to 376.8, which already means a 0.8% weakening of the forint compared to last night. The market is visibly nervous ahead of the interest rate decision in the afternoon.
Development of the EUR/HUF exchange rate
They suddenly hit the HUF
On Tuesday morning, the quotation of the euro suddenly jumped to 376, which means a forint weakening of more than half a percent compared to last night. For the time being, there is no special news behind it, the nervousness before the interest rate decision is probably already visible in the market.
Development of the EUR/HUF exchange rate
The MNB is preparing for a key decision today, which may also affect the forint
On Tuesday morning, the forint was around 374.25 against the euro, which represented a minimal change compared to yesterday. In the longer term, it still appears that after the forint’s weakening last week, the exchange rate settled at around 375. This could even end today, as the MNB will publish the Monetary Council’s interest rate decision in the afternoon, and there is a real chance to reduce the 18 percent key interest rate after a long time. On the one hand, this could have a negative effect on the forint, as the interest rate advantage of the Hungarian currency could decrease, but on the other hand, the Hungarian interest rate would still be by far the highest in the region. We will see which will be the stronger argument in the eyes of the market, and how the central bank will comment on the move. It is certain that we can prepare for an exciting afternoon in the market as well, whatever the MNB’s decision. In addition, it is worth paying attention to international news with one eye, investors are now mainly concerned about the negotiations related to the American debt ceiling, as the deadline approaches, which could lead to the bankruptcy of the USA. Against the dollar, we are now around 346.15, while the British pound costs HUF 430.15.
Development of the EUR/HUF exchange rate
Among the forint’s competitors, the Polish zloty and the Czech koruna started the day with minimal movement, while in the emerging market, the Turkish lira and the Russian ruble hardly budged against the dollar.
For the time being, there is no significant movement in the euro-dollar exchange rate, in addition to the already mentioned debt ceiling negotiations, investors are now primarily paying attention to the interest rate outlook. The quote is around 1.08, as it was on Monday night. Both the Japanese yen and the British pound started the day with minimal movement.
Development of the EUR/USD exchange rate
Cover image: Getty Images
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