Forint Advances Most in Three Months on Draghi Euro Comments
The forint had its biggest advance in three months after European Central Bank President Mario Draghi said the central bank will do whatever is needed to preserve the euro.
Hungary’s currency appreciated 1.6 percent to 284.27 per euro by 4:22 p.m. in Budapest, the biggest jump on a closing basis since April 25, the day when the European Commission gave Hungary approval to start international aid negotiations. The government’s benchmark 10-year bonds soared, cutting yields 19 basis points to 7.561 percent, after rising for four days.
European financial markets surged on speculation the ECB will act to lower Spanish borrowing costs after yields on the nation’s bonds rose to levels that prompted bailouts for Greece, Portugal and Ireland.
Hungary may agree on a bailout with the International Monetary Fund and the European Union by the end of autumn even as views differ on a financial-transaction tax and the budget, Mihaly Varga, the nation’s chief aid negotiator said on public radio MR1-Kossuth today. The first round of aid talks finished yesterday.
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