Above 375, the price of the euro after the MNB’s moderate interest rate hike

Forint was around 374.6 against the Euro on Thursday morning, up 0.1% from last night. Forint recovered significantly as the quote was temporarily below 370 after MNB’s interest rate hike on Tuesday. However, it was already clear that the souffl in Forind was running out, which has been confirmed in the last one and a half days. This morning, MNB will announce its regular one-week deposit tender, in which the key interest rate is expected to rise further. It could also affect Ford’s fate, but news of war and sanctions could be very important. The NATO and EU Leaders’ Summit will be held in Brussels today, attended by US President Joe Biden. According to preliminary reports, they may impose additional sanctions against Russia or worsen the current sanctions. We are currently trading around 341.2 against the dollar, while the British pound is at 450.2 forints.

Among Forind’s rivals, the Polish Zloty started the day with a value of at least 0.1%, while the Czech Coruna weakened by the same amount. In emerging markets, the Turkish lira strengthened marginally against the dollar and the Russian ruble strengthened 0.9%.

The dollar has also started strengthening due to market turmoil in recent days, with the US currency strengthening below 1.10, another sign of risk aversion. The Euro-Dollar quote is now at 1.09825, a further 0.2% rise of the dollar over yesterday. The Japanese yen weakened 0.3% against the dollar, while the British pound is currently stagnant.

Cover image: Getty Images