The Hungarian forint fell today as worsening recession of the country’s economy and slowing inflation made traders speculate about an interest rate cut in the near future.
Hungarian gross domestic product fell 2.7 percent in the fourth quarter of 2012 from a year ago, the biggest drop in three years. The decline followed the 1.9 percent fall in the third quarter. Inflation was 3.7 percent, slowest since September 2011. Poor reports were expected, but the actual figures turned out to be too bad and that hurt the forint.
USD/HUF rose from 215.5750 to 219.5350 as of 14:29 GMT today.
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