Forint Weakens to Month Low as Hungary Cuts Bond Auction on IMF
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Hungary raised less than half as much as planned at a debt auction and the forint dropped to a month low on concern the government may not obtain international aid after two credit downgrades to junk status.
The government sold 15 billion forint ($62 million) in bonds, 18 billion forint less than the target, at the auction today as borrowing costs rose to the highest in more than two years, while the state rejected all bids for three-year notes. The forint depreciated as much as 1.2 percent and traded 0.6 percent weaker at 310.7 per euro, the weakest on a closing basis since Nov. 25, at 5 p.m. in Budapest.