As we reported on Tuesday, the forint hit a 23-month low against the euro on the day of the US presidential election. The Hungarian currency touched HUF 410 on Tuesday morning, and after that it strengthened somewhat, but by Wednesday morning it was already above HUF 411.
With all of this, the Hungarian currency fell to a two-year low, the last time it was this weak was at the beginning of December 2022.
The situation against the dollar is even more dramatic, as it shot up against all other currencies in the last few hours. In 2024, the forint was not so weak compared to the dollar, while at 1 a.m. it was around 374 forints, and by 5 a.m. the exchange rate had already risen to over 383 forints.
Compared to the euro, the Hungarian currency held a relatively stable level of 401-403 until October 22. However, since the publication of the last quarter’s GDP data, the forint has weakened almost continuously. Republican presidential candidate Donald Trump also contributed to the weakening, whose election chances have increased in recent weeks, and as a result, the dollar strengthened.
As we wrote, the partial results of the US presidential election may bring about larger movements in the foreign exchange market, and then the Fed will hold an interest rate meeting on Thursday evening, and market participants are expecting a 25 basis point interest rate cut this time.
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