The forint strengthened for a second day against the euro and the cost of insuring Hungarian bonds with credit-default swaps fell after the government pledged to take further steps to meet its budget-deficit target.
The currency of the European Union’s most-indebted eastern member appreciated 0.4 percent to 279.75 per euro by 11:47 a.m. in Budapest. Improving perceptions of creditworthiness sent Hungarian default swaps falling 11 basis points to 256, according to data compiled by Bloomberg.
Hungary will implement additional fiscal measures should the European Commission forecast a shortfall of more than the EU limit of 3 percent of gross domestic product, Peter Beno Banai, deputy state secretary at the Economy Ministry, said in an online briefing yesterday.
To contact the reporter on this story: Krystof Chamonikolas in Prague at email@example.com
To contact the editor responsible for this story: Gavin Serkin at firstname.lastname@example.org