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Hungarian forint at its peak, but technical hurdle to come, says analyst
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After a sharp weakening, the Hungarian forint has strengthened against both the euro and the dollar in recent days. At noon on Monday, the domestic currency rose to 373 against the euro. It was a new two-week high. What is more, the forint strengthened to 332 against the dollar, which was a new 15-month high, said Attila Weinhardt, Portfolio analyst.
Two-week high, 15-month high
The forint climbed to a two-week high against the euro and a more than one-year high against the dollar on Monday morning. With the former at 373 and the latter at around 332, the currency has had a very good day, InfoStart quotes Attila Weinhardt, analyst at the Hungarian economic news portal Portfolio, as saying.
One of the main domestic factors in the forint appreciation is that the central bank interest rate remains very high, at 16 percent for overnight deposits. In addition, the investor environment abroad is supportive, the Portfolio analyst explains. As an example, he cites that the Fed, the US central bank, appears unlikely to raise rates further after July and is expected to start a cycle of rate cuts next year, starting in the spring and early summer.