Forint Rides Oil Price Drop and Weaker Dollar

The Hungarian forint enjoyed another strong day on Friday, buoyed by falling oil prices and a weaker-than-expected US labour market report.

Oil dropped more than 3 percent during the day, with Brent crude falling back towards USD 100 per barrel after news that additional strategic fuel reserves could be released onto the market.

This decline in energy costs is beneficial for Hungary, as the country relies heavily on imported oil and gas. A lower import bill can ease some of the inflationary pressures associated with expensive energy.

The US jobs report also weighed on the dollar, which weakened after it was revealed that the US economy added just 29,000 non-farm jobs in September, far below the roughly 90,000 expected by economists.