Hungary Rates Bolster Bets for World-Worst Forint Slump
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Hungary’s forint has a better-than-even chance of tumbling to a record low this year after the world’s longest stretch of interest-rate cuts left it vulnerable in the emerging-market selloff.
Option prices are assigning a 55 percent probability the currency will decline to an all-time low of 324.25 against the euro this year, compared with a 32 percent likelihood in May. The forint lost 3.2 percent against the euro and 6 percent versus the dollar in the last three months, the worst performance among 24 emerging-market peers tracked by Bloomberg.