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.
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