Forint Weakens Most in Three Months on Monetary Easing Outlook
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The forint plunged the most in three-months on bets the central bank will cut the benchmark interest rate for a fifth time this year tomorrow and ease monetary policy further in 2013.
The forint depreciated as much as 1.7 percent and was 1.5 percent weaker at 288.1 per euro by 5:45 p.m. in Budapest, the biggest daily decline since Sept. 6 to the weakest level since Sept. 7. Yields on the government’s 10-year bonds were up two basis points, or 0.02 percentage point, to 6.47 percent after falling to a 2 1/2 year low of 6.44 percent last week, according to data compiled by Bloomberg.