Hungarian Forint Slips Against Dollar And Euro Amid Central Bank Interest Rate Decision
19 Juillet 2010 - 2:17PM
RTTF2
At 8:00 am ET Monday, the Hungarian Central Bank announced that
t will maintain the interest rate at 5.25%. Amid the announcement,
the forint fell against the dollar and the euro.
The forint is now trading at 222.86 against the dollar, compared
to an Asian session's 11-day low of 225.0. At last week's close,
the forint was worth 218.17.
Against the euro, the forint is now worth 288.83 and this level
may be compared to Asian session's 1-1/2-month low of 290.16. The
forint was worth 282.11 against the euro at last week's close.
The Hungarian currency tumbled in Asian deals today as the
International Monetary Fund and the European Union have suspended a
review of Hungary's 20 billion euro financing agreement at the
weekend.
The IMF froze its review of Hungary's funding programme over the
weekend, leaving it unable to access funds from an existing EUR20
billion aid package. The move casts doubt on the government's hopes
of securing a standby loan for 2011 and 2012 as it tries to revive
the country's ailing economy.
The EUR20 billion bailout from the IMF and EU saved Hungary from
financial meltdown in 2008 and helped the previous government
continue with reforms that helped dramatically reduce the country's
formerly ballooning deficit.
Euro vs HUF (FX:EURHUF)
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Euro vs HUF (FX:EURHUF)
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