A market has seen a major shift, but there is no cure for the Tisza crisis.
In June, the dollar significantly strengthened against major currencies, which had a negative impact on the forint. The negative impact of the dollar’s strengthening was reflected in the exchange rate, but the forint’s strengthening trend remained, and the Hungarian currency’s performance was outstanding in many indicators. From a future perspective, developments in the United States will be decisive, as the market has already priced in the MNB’s interest rate cuts.
In June, the dollar strengthened against major currencies, which is generally considered bad news for the forint. This is reflected in the exchange rate. However, the strengthening of the dollar has not been sustained, and from a global perspective, the Hungarian currency’s performance is among the best. The future will largely depend on developments in the United States, as the exchange rate has already factored in the National Bank of Hungary’s interest rate cuts.
