Steven N.After hitting 400 on Monday in the foreign exchange market, the forint-euro exchange rate set another record low on Tuesday, reported Magyar Hang.
The Hungarian currency strengthened in the first half of the day, but by early evening fell to another historical low of 403 forints to the euro before managing to claw back to around 400 later on. Portfolio noted that the forint had underperformed compared to Hungary’s neighbors, as the Polish złoty weakened only 0.2% and the Czech koruna was stagnant.
The fluctuations in the exchange rate are having a serious impact on everyday life, writes the news site. Foreign-sourced goods or even accommodation abroad must be paid for in foreign currency, which is why taking a holiday abroad is much more expensive this year, with estimates as much as 20% higher. Persistently high inflation, therefore, has become associated with a persistently weak forint.
A Reuters analysis claimed that the Hungarian currency could soon be 410 to the euro, but even a rate over 440 cannot be ruled out. [Magyar Hang]
