April 29 (Bloomberg) -- Hungary’s forint rebounded the most in six weeks as speculation the European Central Bank will cut interest rates boosted the appeal of higher-yielding assets.
The forint appreciated 1.1 percent, the biggest intraday advance since March 18, to 299.01 per euro by 5:14 p.m. in Budapest, leading gains among 31 major peers tracked by Bloomberg. It lost 2.9 percent in the previous eight sessions.
Most emerging-market currencies strengthened with the euro as the majority of analysts polled by Bloomberg predicted the ECB will reduce rates this week in an attempt to stem the region’s recession. The U.S. Federal Reserve will meet tomorrow to consider renewing its commitment to $85 billion a month of asset purchases.
“Optimism that the ECB will cut interest rates is helping currencies across the region, and the forint is typically more volatile,” Gaelle Blanchard, a strategist for emerging markets at Societe Generale SA, said by phone from London. “The extent of the move may be magnified by thin market liquidity. We don’t see any news from Hungary affecting the market today.”
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