Bloomberg News

Forint Strengthens Fifth Day as Greek Deal Boosts Risk Appetite

February 21, 2012

Feb. 21 (Bloomberg) -- The forint gained against the euro for a fifth day after Greece won a bailout, boosting bets Europe’s debt crisis will be resolved and increasing investor appetite for riskier assets.

The currency of Hungary, the European Union’s most indebted eastern member, appreciated 0.3 percent to 286.79 per euro by 10:23 a.m. in Budapest. The government’s benchmark 10-year bonds weakened, lifting yields seven basis points to 8.544 percent.

Finance ministers awarded Greece 130 billion euros ($173 billion) in aid, engineered a central-bank profits transfer and forced investors to provide more debt relief in a deal that will support the nation past a March bond repayment.

“The forint extended yesterday’s rally thanks to the Greek agreement early this morning,” Levente Papa, a currency and fixed-income strategist at OTP Bank Nyrt., Hungary’s largest lender, and colleagues wrote in a research report today.

--Editors: Linda Shen, Peter Branton

-0- Feb/21/2012 09:40 GMT

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net -0- Feb/21/2012 09:26 GMT


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