Hungarian Forint Weakens Against Euro, Government Bonds Tumble
The forint slid 0.8 percent to 308.60 per euro by 4:33 p.m. in Budapest, after strengthening 0.4 percent in the previous two days. Today’s move extends this year’s losses to 9.7 percent. Bonds slumped, lifting yields on benchmark 2017 notes 24 basis points, or 0.24 percentage point, to 9.49 percent, a month high.
The euro weakened, stocks fell and Italian bonds trimmed gains as a surge in the European Central Bank’s balance sheet to a record 2.73 trillion euros ($3.54 trillion) highlighted growing risks from the region’s debt crisis. Hungary is the European Union’s most-indebted eastern member.
Mol Nyrt. (MOL), the biggest oil company in Hungary, declined 1.8 percent to 17,585 forint, leading a 1.3 drop for the country’s BUX equity index.
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