Hungarian Forint Weakens Past 366 Per Euro Amid Global Market Pressure

The Hungarian forint has weakened beyond 366 against the euro on Thursday morning, reaching its lowest point in months. The currency's decline is largely attributed to external factors, including a stronger dollar and surging US bond yields.

According to experts, higher expected US interest rates tend to push Treasury yields upwards, making dollar-denominated investments more attractive. This can strengthen the dollar while putting pressure on currencies like the forint, particularly when investors reduce exposure to smaller or more volatile markets.

The Hungarian National Bank has maintained its base rate at 5.50% and emphasized the importance of foreign-exchange market stability. However, with US yields rising rapidly, the advantage provided by high Hungarian interest rates is becoming less significant.