The forint gained for the first time in four days against the euro, rebounding from the biggest decline in more than a week after Hungary’s trade surplus beat economists’ estimates.
Hungary’s currency appreciated 0.3 percent to 288.71 per euro by 10:32 a.m. in Budapest after losing 1.1 percent on July 6. Yields on the government’s benchmark 10-year bonds were little changed at 7.984 percent.
The trade surplus was 701 million euros ($860 million) in May, the statistics office in Budapest said today based on preliminary data. Economists in a Bloomberg survey forecast a surplus of 600 million euros. The forint fell last week after the central bank said a new tax on financial transactions proposed by the government may violate European Union rules.
“The better-than-expected trade balance may have played a role in the forint’s rebound,” Peter Karsai, a Budapest-based trader at Commerzbank AG, wrote in an e-mail today.
The first round of talks between Hungary, the International Monetary Fund and the EU on a credit line will take place between July 17-25, Mihaly Varga, minister in charge of the talks, said in an interview on public television station M1 today. The EU’s executive arm announced the start of talks on July 6 after Hungarian legislators approved amendments to a disputed central bank law which has blocked negotiations for more than seven months.
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