Market reaction to last week’s European Union bailout package for Greece firmed the Hungarian forint last Friday, but the currency is weakening today. Optimism on the deal of European leaders did not last long: it was over by Friday noon. The agreement has given the forint some breathing room, but investors are now looking forward to receiving any further details regarding the euro zone debt crisis in the lack of considerable local news during the summer holiday. The likelihood of contagion of the crisis in the euro zone puts a pressure on the forint as well.
The Hungarian forint exchange rate is one of the most vulnerable exchange rates in Central Europe these days. It was hit by the strengthening Swiss franc during the European debt crisis. The firm franc is raising risks around Hungary’s economy, Mihály Varga, state secretary of the prime minister’s office, said last Thursday: “If current franc-forint exchange rates prove permanent, that could cut Hungary’s gross domestic product growth by 0.3-0.5 percentage points.” The country’s annual economic growth rate was expected to reach 3%, while household consumption remained low, and unemployment rate is high.
Latest Hungarian Forint Foreign Exchange Rates
On currency markets, one Swiss franc bought 232,65 Hungarian forints, while a UK pound sterling currently exchanges 305,13 a euro 269,4, and one US dollar 187,47.