The forint was not saved by Trump's words: the Hungarian currency's strength has collapsed.
The conflict in the Middle East and the potential closure of the Strait of Hormuz led to a significant rise in oil prices, with Brent prices once again approaching $80. Investors have favored the dollar, putting pressure on the forint. Although the forint strengthened in the morning, it weakened again in the afternoon, with the euro-forint exchange rate exceeding 359 in the evening. Throughout the week, attention will be focused on US inflation data and events in the Middle East, as well as government economic measures.
The resurgence of the Middle East conflict and the potential closure of the Strait of Hormuz led to a sharp increase in oil prices on Monday morning, with Brent’s price per barrel reaching nearly $80. Investors have turned to the safer dollar, putting pressure on riskier currencies, including the forint. In the morning, the forint recovered some of its losses, but in the afternoon it began to weaken again, with the euro-forint exchange rate trading above 359. The week’s market attention will likely be focused on US inflation data and developments in the Middle East. Domestic economic measures led by Prime Minister Viktor Orbán could also be important.
