This is why the forint market switched to higher gear

3:10 p.m. Forint going strong

After spectacular firming on Thursday, the strength of the forint is subdued, the EUR/HUF rate remains stable at 315.20.

2:13 p.m. Below 315

1:57 p.m. It never rains, but it pours

The EUR/HUF rate is just about to bounce back to 315.

1:40 p.m. Forint marches ahead

A wave of forint firming in the morning was followed by another one in the afternoon. As a result, the EUR/HUF par is trading around 315.50 shortly before 2 p.m.

In addition to the positive effect of the hopeful global market sentiment (European stocks at +2%), the forint is likely to have been supported by an internal market force. Specifically, the National Bank of Hungary has received HUF 125.5 billion in bids in a 5-year interest rate swap tender, which was wholly accepted. The National Bank of Hungary is increasingly making its indirect influence felt in the government bond market, resulting in greater interest in long bonds than before. You can read the details here.

12:48 p.m. Forint is starting to find its footing

The EUR/HUF rate has sunk from Thursday morning's 318 to 316.50 by now. This could be the result of positive market sentiment in European stock markets as the Greek government has released news of an ambitious reform programme to be submitted to Brussels.

11:35 a.m. Meanwhile, the euro...

The euro has been losing vs. the US dollar since Thursday morning, despite news that the Greek government has raised its financial consolidation commitment to the international organizations. However, it is not yet certain whether the Greek Parliament approved the proposal.

10:30 a.m. Small change

Since Thursday morning, the EUR/HUF rate has bounced back from the peak at 318. The Hungarian forint is currently traded at 317.20 vs. the euro.

8:50 a.m. EUR/HUF near 318!

Wednesday evening saw the EUR/HUF rate test levels above 318, another nearly 6-month low for the Hungarian currency. This happened despite the fact that the euro itself took a hit from the recent days' events in Greece. Since Hungary is part of the EU, in such cases the weakening of the euro typically does not bring gains for the forint in the EUR/HUF relation.

For the same reason, the forint is suffering even greater losses vs. other major currencies - for instance, the Hungarian currency has lost 3.3% month-on-month vs. the US dollar. Meanwhile, the CHF/HUF rate has also jumped way above the 300 mark; on Thursday morning the pair was trading around 303.

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