The forint opened this week below 390 against the euro. The question for this week is whether it can hold below 390 for an extended period, though it has not managed to break significantly past this level. The good news is that the Hungarian stock market has reached an all-time high, with OTP playing a major role.

The forint’s exchange rate has been quite volatile this week, but overall, the EUR/HUF exchange rate has not seen significant changes, and the same applies to the USD/HUF exchange rate. On Tuesday morning, the budget balance for March was released, showing several increases, which caused a slight weakening of the forint.

Equilor’s senior analyst Zoltán Varga explained to the index. Due to higher-than-expected inflation in the United States, fewer people now expect a rate cut in June, and some speakers have even questioned whether the Federal Reserve will cut rates at all this year. This led to a significant strengthening of the dollar against the euro, causing the forint to lose its strength in the early session and surge from 389 to 391 against the euro in a short period.