Forint Strengthens Second Day as Hungary Pledges Budget Measures

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.

European stocks and most emerging-market currencies gained today as results from companies including BASF SE (BAS) and Unilever NV (UNA) beat estimates.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.