Forint Looks Vulnerable After 2025 Rally as Risks Mount

The standout developing-nation currency in the year of emerging markets — Hungary’s forint — is looking increasingly vulnerable, according to a growing number of Wall Street analysts.

While the market has been heavily positioned for a political shakeup and hawkish interest-rate policy has underpinned the forint’s strength, both factors are now at risk. The Hungarian currency has cooled in December but is still 21% stronger against the dollar and up almost 7% versus the euro this year, the best showing among its EM peers following the ruble.