Bloomberg News

Forint May Weaken on Delay to Start of IMF Talks, SocGen Says

May 10, 2012

Investors should sell the forint against the euro and the Turkish lira because Hungary faces further delays to starting talks on a bailout from the International Monetary Fund, Societe Generale SA said today.

Hungary’s currency may weaken to 300 per euro and 130 per lira, Guillaume Salomon, a London-based strategist at the bank, wrote in an e-mailed report today. The forint appreciated 0.3 percent to 289.4 per euro by 12:43 p.m. in Budapest. It traded little changed at 124.97 per lira.

“We do not expect the negotiations on a new financial package to start before the end of the summer, at the earliest, which is a scenario that is not priced in by the market,” Salomon wrote.

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


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