The Hungarian Forint has weakened for the first time in a week and the nations yields fell to their lowest level in three years thanks to a deepening in Hungary’s recession.
The currency weakened from a one-month high after the Hungarian statistics office revealed that the Eastern European nation’s GDP fell by 2.7% in the fourth quarter from a year earlier marking its biggest decline in three years. Economists had been predicting a 1.9% fall. The worse than expected data has fuelled speculation that the Hungarian Central Bank called the Magyar Nemzeti Bank may cut interest rates.
Annika Linbald from Finland based Nordea Bank AB said, “The bleak data and heightened expectations of further rate cuts have clearly weakened the Forint today. Dismal is the only word that describes Hungary’s GDP data.
The Forint had seen something of a rally over the past week as the government managed to raise $3.25 billion in its first sale of foreign bonds in almost two years.
The forint has had a little jerk up here because they came to market and raised some money, but I don’t think that changes the fundamental situation,” said Jan Dehn, co-head of research at Ashmore Investment Management Ltd., “Hungary is going to struggle with growth.”
Hungary has suffered due to the impact of the ongoing Euro crisis and the implementation of austerity measures.
Current HUF Exchange Rates
The Hungarian Forint to Euro exchange rate is currently trading at 0.00342
The Hungarian Forint to US Dollar exchange rate is currently trading at 0.00456
The Hungarian Forint to Pound Sterling exchange rate is currently trading at 0.00294
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