Currency Warrior Hungary Seen Targeting De Facto Cap on Forint
- Central bank sees forint strength undermining export appeal
- Stealth intervention seen as currency surpasses 310 per euro
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Hungary is the latest country to enter the global currency war.
The eastern European nation’s central bank -- which has said it has no exchange-rate target -- has gotten into the habit of announcing stimulus to curb the forint’s appreciation whenever it approaches 310 per euro. Now with the currency trading near a six-month high, policy makers have abandoned a commitment not to cut interest rates until 2018.