Bloomberg News

Forint Gains Most in More Than Week as Hungarian Bonds Advance

February 14, 2012

Feb. 13 (Bloomberg) -- The forint appreciated the most in more than a week against the euro and Hungarian bonds gained after Greek lawmakers approved austerity plans to secure rescue funds, boosting investor demand for riskier assets worldwide.

The currency of Hungary, the European Union’s most-indebted eastern member, appreciated 1.2 percent, the most since Feb. 1, to 290.79 per euro by 4:02 p.m. in Budapest. Bonds rose, cutting yields on government notes due November 2017 by 18 basis points, or 0.18 percentage point, to 8.49 percent.

Global stocks and oil rose and the euro gained as passage of the Greek austerity bill fueled optimism that euro-region finance ministers will approve the second bailout on Feb. 15.

“The Greek austerity vote is the indisputable driver in the market,” Gyorgy Cselenyi, a Budapest-based bond trader at BNP Paribas SA, said by phone today. “I don’t expect much further strengthening from these levels ahead of Wednesday’s meeting of finance ministers. I believe the market has peaked for now. The 290 level for the forint is a very strong resistance.”

--With assistance from Zoltan Simon in Budapest. Editors: Linda Shen, Peter Branton

To contact the reporters on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net; Edith Balazs in Budapest at ebalazs1@bloomberg.net

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


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