The Hungarian forint’s foreign exchange rate weakened on Tuesday as investors and traders pared bets Hungary’s central bank will increase borrowing costs.
The Hungarian forint depreciated 0.4 percent to 296.4 per euro by 9:39 a.m. in Budapest.
Forward rate agreements fixing three-month interest costs in one month fell 4 basis points to 6.32 percent, a third day of declines, cutting the spread against the Budapest Interbank Offered Rate to 20 basis points from 39 basis points on October 4th.
The Magyar Nemzeti Bank should keep the benchmark two week deposit rate at 6 percent today. The decision will be announced at 14.00 local time, with central bank President Andras Simor to comment at 15.00.