June 3, 2023

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Forint has changed course – Portfolio.hu

On Wednesday morning, the forint stood at 375.3 against the euro, so far the same as Tuesday evening’s exchange rate. The Hungarian currency traveled a long way in the second half of the day on Tuesday, first weakening and strengthening, then quickly reversing. So apparently nothing happened, but in the meantime, the MNB cut the benchmark interest rate from 18 percent to 17 percent, which will already take effect in today’s one-day deposit tender. According to expectations, the central bank could gradually cut interest rates in the coming months, but in the short term, the development of negotiations on the US debt ceiling will be more important. If an agreement is not reached next week, a government bankruptcy in the United States is conceivable, leading to severe turmoil in financial markets. In other words, from the point of view of the forint, it is also worth paying attention to the news from the USA. Against the dollar, we are now at 348, while the British pound is at HUF 433.

Among the forint’s rivals, the Polish zloty and the Czech koruna started the day flat against the euro. Among emerging markets, the Turkish lira and the Russian ruble showed minimal movement against the dollar.

Developments in the debt ceiling negotiations could also affect the exchange rate of the US currency, with the Euro-Dollar quote currently hovering just below 1.08, representing a correction of around 0.2 percent for the time being after the dollar strengthened yesterday. . The Japanese yen gained 0.1 percent and the British pound gained 0.3 percent against the dollar.

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