Global financial markets were panicking on Friday. Investors feared a double dip recession, they sold stocks to move funds to safe havens such as the Swiss franc. The franc has strengthened further, the Hungarian forint suffered losses against the franc and the euro as well. The forint hit a new record against the franc at 255 on Monday morning, but then it firmed to 253.
The exchange rate of the Hungarian forint has gained against the US dollar. The dollar fell in the wake of Friday U.S. downgrade. Standard & Poor’s has downgraded the U.S. credit rating from AAA to AA+ . The other two main rating agencies, Moody’s and Fitch have not followed S&P. Moody’s reaffirmed the US triple-A rating but adopted a negative outlook. Fitch will announce the outcome of its rating review late August or early September.
The main European stock markets opened with strengthening today, and the improving market mood spread over the currency markets, too. The Swiss franc has been depreciating, while the euro has been firming on European Central Bank’s announcement to start buying Italian and Spanish debt. Still the Hungarian forint looks like the weakest link, the EUR/HUF exchange rate is above 275, a level not seen since January 2011.
July inflation data will be published in Hungary this week. As a result of a very low domestic demand, inflation is expected to be lower than earlier. Central European markets will continue to be impacted by events in western Europe and the U.S..
Latest Hungarian Forint Foreign Exchange Rates
On currency markets, one Swiss franc bought 253.36 Hungarian forints, while a UK pound sterling currently exchanges 315.71, a euro 275.01, and one US dollar 192.31.