So far, the MNB’s reassuring messages have had an effect: the florin falls again



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The forint started the day at 362.5 against the euro on Wednesday morning, which means minimal strengthening compared to Tuesday night in terms of the Hungarian currency. However, if we add that the price was above 366 before yesterday’s interest rate decision by the MNB, we can already speak of a more significant correction. The central bank did not change monetary conditions as expected and in the announcement largely echoed earlier messages about paying close attention to the inflation outlook. The market seems to have expected a more relaxed tone from the Monetary Council, so even a neutral message was enough to strengthen the forint. The dollar is now close to 306, while the British pound costs 397.4 guilders.

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Currency pressure also eased slightly in the region, with the Polish zloty starting to strengthen 0.1 percent this morning and the Czech koruna stagnant against the euro. In the emerging market, the Turkish lira moved slightly against the dollar only, while the South African rand strengthened 0.3%.

In addition to the MNB’s decision, international sentiment also helped the forint, as the dollar moved weaker again. The euro-dollar price was around 1.1858 on Wednesday morning, which was a further increase of 0.3 percent even yesterday. The Japanese yen strengthened 0.2 percent against the dollar and the British pound showed a similar improvement.

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Cover image: Getty Images



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