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

Read More

Recasts with Hungarian move

WARSAW, Sept 24 (Reuters)The Hungarian forint EURHUF= firmed on Thursday, after the central bank unexpectedly raised the interest rate on its one-week deposit facility NBHK by 15 basis points to 0.75%.

The forint had weakened in recent weeks due to the impact of a second coronavirus wave on economic recovery and rising inflation. But the rate move lifted it immediately from five-month-lows around 365 versus the euro to around 363.5.

Market players said, however, that trend may not last.

At 1029 GMT the forint was 0.42% stronger on the day at 363.78.

Other Central European currencies were softer, taking a hit from a global risk sell-off on fears that rising coronavirus cases are slowing economic recovery.

Europe has seen a surge, with Poland reporting a new record daily number of cases on Thursday. In the Czech Republic, the surge has been growing

Read More