Hungary forints reaches new record low against EUR, USD
EUR/HUF over 432.5, USD/HUF over 446 - 16:44
The forint hit yet another all-time low at 432.6 versus the euro.
The HUF eased to 447.4 to the USD.
15:22
Shortly after 3.20 pm, the forint hit 432 versus the euro, which marks a 0.5% weakening since late Tuesday.
14:34
The HUF eased to north of 445 to the USD, a new all-time low.
14:32
Shortly after 2.30 pm, the HUF went over 431 against the single European currency, which marks an 0.3% depreciation over its Tuesday close. Elsewhere in the region, the Czech koruna and Poland's zloty have been stagnating.
Meanwhile, Hungary's inflation soared to a 26-year high of 20.1% yr/yr in September, from 15.6% in August.
A technical analysis chart published by Reuters on Tuesday shows that Hungary's forint is expected to weaken further, with the 440 level against the euro looking to be within reach first, but later EUR/HUF could slump even to 500 or beyond.
The direct trigger of the current HUF weakening was that the central bank (MNB) announced the end of its rate hike cycle two weeks ago. The last move was a 125bp hike to 13.0%, with the base rate up by 10% this year alone, but it still failed to tame inflation.
Some like inflation, though. (Cartoon by Jim Benton.)
