March 18th, 2010

Forint strengthens to 15-month high against euro

The forint strengthened to nearly a 15-month high on Wednesday’s interbank market, trading at 261.43 against the euro shortly before 6 p.m., compared to a Tuesday-afternoon rate of 263.87.

The forint last firmed past 262 against the euro during the final week of 2008.

On Monday, the forint transcended the strong side of the 265-276 range in which it had been trading against the euro since August 2009.

Dealers say that a pledge on Tuesday from the finance ministers of the eurozone countries to provide financially besieged Greece with loans, if needed, has mitigated fears among traders that a domino effect might sweep through the zone’s periphery, thus providing the forint with a boost. Dealers add that traders have, moreover, concluded that some central and eastern European countries, including Hungary, have greater growth potential than some of their eurozone peers.

The dollar commanded 189.98 forints on Wednesday morning, compared to a Tuesday-afternoon rate of 191.80.

Topics
Share
Comments
The All Hungary Media Group is firmly committed to freedom of expression and therefore applies a mostly "hands off" approach to comment moderation. Comments left by readers represent their own views and do not necessarily reflect the opinions or beliefs of the staff, editors or owner of the All Hungary Media Group, who nonetheless reserve the right to remove comments that are off-topic or which moderators consider to constitute "hate speech." Also note that in order to prevent spam we generally close entries off to comments several days after publication.

Comments are closed.