June 1, 2023

South Sudan News Agency

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They pulled the dollar after the interest rate decision

On Wednesday morning, the forint was around 374.4 against the euro, representing a minimal, 0.1 percent gain from the Hungarian currency’s point of view. On Tuesday afternoon, the forint began to weaken significantly, possibly due to the government raising the 2024 deficit target from 2.5% to 2.9% in the latest consolidation plan. On cue, this was viewed negatively by investors, although analysts had previously warned that it would be difficult to maintain next year’s projected deficit reduction. Hungarian time, today’s central bank decision could be decisive for the forint’s outlook, which could trigger a sharp uptick in the forex market in the evening. Decisiveness had to be saved for the weekend after First Republic Bank. Against the dollar, we are now at 339.4, while the British pound is HUF 424.

Among the forint’s closest rivals, the Polish zloty and the Czech koruna started the day with limited movement, while in the emerging market, the Turkish lira and the Russian ruble weakened slightly against the dollar.

The central bank’s interest rate decision in the evening will primarily bring about a more aggressive movement in the euro-dollar exchange rate, and this may indirectly affect the forint as well. According to expectations, the US Federal Reserve will raise the key interest rate by another 25 basis points, but with tensions in the banking system and lower inflation, they will indicate that this may be the last time. tightens. By this morning, the dollar has weakened by 0.2 percent in the market, so the euro is once again above the psychological threshold of 1.10. The Japanese yen gained 0.4 percent against the dollar and the British pound gained 0.2 percent.

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