The forint weakened on Friday morning’s interbank market, trading at 304.40/70 against the euro at 9:00 a.m., compared to a Thursday-afternoon rate of 301.30/50.
Dealers remark that the forint was trading at around 300 against the euro on global currency markets before the open of trade in Europe on Friday morning.
Dealers add that the forint weakened in unison with other central and eastern European currencies such as the Czech koruna and the zloty on Friday morning, noting that traders are expecting regional currencies to stabilize amid considerable volatility.
The dollar commanded 242.05/30 forints on Friday morning, compared to a Thursday-afternoon rate of 236.70/90.
Forint-market O/N interest remained at around 9.00/20pc on Friday morning, compared to the National Bank of Hungary’s current key-interest rate of 9.50pc. Investor interest in longer-term expirations has remained non-existent on Friday morning.
Movement on the secondary government-bond market was mixed on Thursday, when yields on shorter-term maturities rose slightly, while those on longer-term maturities declined.
Hmmm…. Big difference? Worth writing about? The difference represents appr 1% – guess speculation from one bank could trigger that?