articleimg-1
Jul 17, 2018

The Hungarian forint gains strength

Hungary's forint has strengthened by 0.3 percent to 322.15 versus the euro

Hungary's forint has strengthened by 0.3 percent to 322.15 versus the euro. 

The forint has eased 3.5 percent so far in 2018 and the latest gains could come as a relief for the Hungarian central bank, which has kept its main rate at 0.9 percent. 

"The forint's weakening was overdone, and now we can see a correction," Zoltan Varga, senior analyst at brokerage Equilor told Reuters. 

"I think this movement in the forint is more of a technical nature, as the currency broke a (weakening) trendline on Friday." 

Varga added that the forint could soon firm to a range of 320.50 to 321.20 versus the euro, where the gains could then level out. 

Other currencies in the central European region also strengthened, with the zloty firming 0.2 percent, and the Czech crown by 0.1 percent. 

The Hungarian central bank will hold its next rate meeting on July 24th.