Bloomberg News

Hungarian Forint Weakens Against Euro, Government Bonds Tumble

December 28, 2011

Dec. 28 (Bloomberg) -- Hungary’s forint weakened, snapping two days of gains against the euro, and government bonds fell as investors sold riskier assets worldwide.

The forint slid 0.8 percent to 308.60 per euro by 4:33 p.m. in Budapest, after strengthening 0.4 percent in the previous two days. Today’s move extends this year’s losses to 9.7 percent. Bonds slumped, lifting yields on benchmark 2017 notes 24 basis points, or 0.24 percentage point, to 9.49 percent, a month high.

The euro weakened, stocks fell and Italian bonds trimmed gains as a surge in the European Central Bank’s balance sheet to a record 2.73 trillion euros ($3.54 trillion) highlighted growing risks from the region’s debt crisis. Hungary is the European Union’s most-indebted eastern member.

Mol Nyrt., the biggest oil company in Hungary, declined 1.8 percent to 17,585 forint, leading a 1.3 drop for the country’s BUX equity index.

--Editors: Linda Shen, Ash Kumar

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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