Forint Surges to Best Monthly Gain on Record on EU Budget Pact
The forint gained, extending the biggest monthly advance on record after European Union leaders completed a treaty on fiscal discipline which Hungary also accepted.
Hungary’s currency strengthened 0.4 percent to 294.1 per euro by 9:28 a.m. in Budapest. A close at that level would mean a 7 percent monthly appreciation, the most since at least 1999, the year the European common currency was launched. The benchmark BUX stock index rose 1.2 percent to 19,306.95, heading for a 14 percent advance in January.
Hungary, the EU’s most indebted eastern member, will support a fiscal compact after modifications were made to the text, Prime Minister Viktor Orban told reporters in Brussels late yesterday. The backing of the Hungarian premier, who had previously said that Parliament would have to make the final decision on the accord, means only Britain and the Czech Republic boycotted the plan.
The forint has rallied this month as investors became more optimistic Hungary will obtain aid from the International Monetary Fund and the EU. The currency has jumped 8.5 percent since Orban said on Jan. 5 he was ready to discuss conditions for a “quick” deal on the bailout.
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