"Hungary's forint dropped sharply to a 3.5-month low against the euro shortly after market opening on Friday, amidst cloudy global investor sentiment and in tandem with the dollar's continued firming.EUR/HUF opened at around 245 and eased right up to 247 shortly. The forint was quoted at 246.30/70 to the single European currency at 09:44 CET, a more than 0.5% weakening after Thursday's over 1% depreciation.
(Note that the EUR/HUF chart shows data with a 20-minute delay.)
Amidst recession fears investors are taking their money with wobbly knees to US government bonds, which props up the USD and the HUF is easing in tandem with other EM currencies in the region, a local currency dealer told Portfolio.hu. He added that punters are in to sell HUF, which boosted liquidity on the interbank market to over what was general in the past days.
The weakening of the HUF picked up when it reched 245.50, as stop-loss levels were hit, he noted, projecting the forint easing to stop at 248 today.
USD/HUF eased to above 178 from around 176.50/177.00.
Government securities yields rose 6-7 bps on the secondary market."
Source: Portfolio Online Financial Journal
06.10.2008