By Anita Komuves
BUDAPEST, Sept 25 (Reuters) – The Hungarian forint firmed for a second straight session on Friday, after the central bank raised interest rate on its one-week deposit facility.
The forint EURHUF= was up 0.32% at 362.640 against the euro. The currency came under pressure recently, hitting a five-month low earlier this week, as traders remained wary about the economic effects of a coronavirus resurgence.
Hungary’s central bank unexpectedly raised the interest rate on its one-week deposit facility by 15 basis points to 0.75% on Thursday at a tender, after keeping all of its main rates unchanged earlier this week.
The rate hike immediately lifted the forint, but analysts say that the effect could be temporary and the forint will likely stay above the 360 level.
“The strengthening is a short-term correction. In this negative global sentiment, I expect the forint to weaken back to levels of