Hungary’s forint retreated from the strongest in two months as Prime Minister Viktor Orban won yesterday’s parliamentary election to earn a second term.
Hungary’s currency weakened 0.3 percent to 306.62 per euro by 9:35 a.m. in Budapest. The government’s benchmark 10-year forint-denominated bonds advanced, cutting the yield by 2 basis points, or 0.2 percentage point, to 5.56 percent. The benchmark BUX stock exchange fell 1.1 percent to 17,784.33.
Orban’s Fidesz party won 67 percent of seats in Parliament with 99 percent of the ballots counted, the election regulator said on its website today. The premier was on the brink of keeping the supermajority which allowed him to change the Constitution and set off disputes with the European Union on the erosion of checks and balances since taking power in 2010.
“The market remains concerned that Viktor Orban will interpret his party’s victory as a mandate for him to steer the country even further away from the rule of law,” Phoenix Kalen, a London-based strategist at Societe Generale SA, wrote by e-mail late yesterday.
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