Thursday’s overall bad sentiment on emerging markets pushed the Hungarian forint to weaker levels. The forint retreated early in the morning trading. The forint closed at 279.45 EUR/HUF. Bad sentiment on the Hungarian market could intensify as there were pessimistic comments about the situation in the banking sector from Standard and Poors. In its report S&P warns that Hungarian together with Romanian banks, which are the most exposed banks to foreign exchange risk from indebted borrowers in Eastern Europe. Today, given rather negative sentiment in the domestic bond market the forint will probably tend to remain weak ahead of Monday’s meeting of the central bank.
(CSOB - Investment research)