The publication of weaker-than-expected US July ISM processing industry purchasing manager index bumped investor’s risk aversion to a higher level on Monday afternoon. The news weighed on sentiment across financial markets, investors have been once again finding refuge in the Swiss franc. It has made major gains against major currencies and broke historic records.
The Hungarian forint was no exception, moreover, it suffered one of its the greatest declines within a day. The Swiss franc has risen above 246 versus the Hungarian forint. Similar depreciation was witnessed during the global crisis in 2008-2009, with the greatest decline on 12th March 2009 when the CHF/HUF rate rose from 191 to 208 within a day. The Hungarian currency lost its gains against the other major currencies, too.
Markets calmed on Tuesday morning, the firming of the Swiss franc stopped. The value of the Hungarian forint is relatively stable at the time being.
While U.S. House members voted to increase the debt ceiling and cut $2.1 trillion from the budget deficit Monday evening, investors are shifting attention to the euro-zone debt crises. It is a question, if Italy will need financial assistance and Spain may also need help sooner or later. With the negative turn in investor sentiment markets may be volatile further on.
Latest Hungarian Forint Foreign Exchange Rates
On currency markets, one Swiss franc bought 244.28 Hungarian forints, while a UK pound sterling currently exchanges 309.90, a euro 270.06, and one US dollar 190.48.