Economy 24 August 2012, 10:09am

Hungary forint pushed to one-week low

Portfolio

Although Thursday afternoon's moderate decline in investor sentiment came to a halt in the evening CET, markets seemed to be once again gloomier as the opening bells were sounded in Europe. As a result, the Hungarian forint turned south after some hesitant sideways movement and reached a one-week low vs. the euro.

In relation to the US dollar, the value of the forint has been likewise getting further away from yesterday's 3.5-year peak. Friday is expected to be rather eventless, with only one US macro data with a potential impact on the forint. In Europe, the meeting of German Chancellor Angela Merkel with Greek Prime Minister Antonis Samaras could stir up markets.

9:35 a.m. Forint weakest in a week

There are no signs of improvement in global market sentiment, with key European stock indices in negative territory (-0.3% to -0.5%) and EUR/USD quotes getting further away from yesterday's 7-week peak of 1.2585. In a moderately deteriorated external environment, the forint has turned towards a weaker range; the EUR/HUF rate jumped to 278.5, something last seen a week ago. Having peaked at 219.5 on Thursday, the USD/HUF pair is currently traded at 222.5, while the value of the Swiss franc vs. the forint rose to 232.

The Hungarian forint did not stand alone in the region as a loser vs. the euro this morning; things have been going pretty much the same for the Polish zloty and the Czech koruna, with losses roughly on the same scale across the region.

8:37 a.m. HUF edging towards a peak vs. USD

The weakening of the forint that ensued yesterday in the wake of a moderate decline in global market sentiment came to a halt in the evening, with quotes vs. the euro hovering near 277.5 since then. For Thursday's forint market trends, see:

Meanwhile, the USD/HUF market has been less static: the exchange rate briefly plunged below 220 yesterday, with a correction seen today to approximately 222.5.

In relation to the Swiss franc, the forint has been fluctuating in the range of 223 to 229. This morning, quotes have been right in the middle of that range.