Forint Strengthens to Highest in Three Weeks on China Rate Cut
Hungary’s currency appreciated 1.1 percent to 294.7 per euro by 5 p.m. in Budapest, the strongest since May 17. That took the forint’s advance this week to 3.6 percent. The government’s benchmark 10-year bonds rallied, cutting yields 25 basis points, or 0.25 percentage point, to 8.368 percent.
Demand for riskier assets rose as China’s move fanned optimism that global policy makers will act to bolster growth. The forint fell as much as 0.5 percent earlier today after data showed that Hungary’s industrial output unexpectedly plunged in April.
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