Hungary’s Forint Weakens to Three-Month Low Versus Swiss Franc
The forint slid to the weakest in more than three months versus the Swiss franc as Switzerland’s currency strengthened to a record against the euro.
The forint depreciated 1 percent to 225.384 per franc by 10:24 a.m. in Budapest, the weakest intraday level since Sept. 8. Hungary’s currency traded 0.2 percent lower against the euro.
Switzerland’s franc jumped to a record against the euro and the dollar as investors bet its economy is set to outperform the euro area and U.S. next year. The currency, viewed as a safe haven, has strengthened 8.4 percent this year, according to the Bloomberg correlation-weighted currency indexes, benefiting from Europe’s sovereign debt crisis.
“We see little chance of a significant strengthening” of the forint against the franc, Commerzbank AG analysts led by Peter Karsai in Budapest said in a note to clients today. “The euro just can’t seem to gain against the franc.”
Hungary’s benchmark BUX Index fell 0.7 percent to 21,304.51, led by OTP Bank Nyrt., which dropped 1.6 percent.
To contact the reporter on this story: Andras Gergely in Budapest agergely@bloomberg.net.
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
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