Raising the debt ceiling in the US has not eased tension in financial markets, investor’s sentiment deteriorated on bad economic growth outlook and unresolved debt issues in the euro-zone. Amid global risk aversion, the exchange rate of the Swiss franc hit new records on Tuesday afternoon. Appreciation of the franc continued on Wednesday morning. The CHF/HUF rate hit several records Tuesday afternoon and reached a new all-time high rising above 253 today.
The Swiss central bank announced its plan to cut interest rates to curb the strong Swiss franc. After the announcement, the franc began to deteriorate. The Swiss franc – Hungarian forint exchange rate fell from 253 to 244.50. In the same time the forint weakened against the euro and the British pound, while there was no major change against the US dollar.
The Hungarian central bank announced that the nation’s banks have adequate capital to manage extreme exchange rate fluctuations. After the global economic crisis, Hungarian banks took measures to strengthen their capital and liquidity positions. In April 2011 a stress test was conducted that calculated with Swiss franc exchange rates of HUF 245 for the end of 2011 and HUF 257 for the end of 2012.
Latest Hungarian Forint Foreign Exchange Rates
On currency markets, one Swiss franc bought 245.67 Hungarian forints, while a UK pound sterling currently exchanges 311.36, a euro 272.21, and one US dollar 190.03.