In addition to global trends – the strengthening of the dollar against the euro hurts the forint – country-specific factors also played a role, as other regional currencies started to weaken only later, Napi Gazdaság observes.

The weakening was accompanied by increasing yields on the bond market, as the yield on the ten-year bond went up 20 basis points to 4.99%.

There was a significant increase in yields last week, analyst Ákos Kuti of Equilor brokers noted. He said it seems that a few foreign market players have changed their mind, as they do not see further opportunities in the Hungarian market at the present yields.

Investors are stepping aside while foreign-currency loans are converted to forint debt, as they expect some turmoil, Kuti added.

Source: Hungary Around the Clock

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