The forint gained a second day against the euro, heading for its strongest in 11 months, amid easing concern over Greece after international creditors said the country is making progress on meeting bailout terms.
The Hungarian currency advanced 0.3 percent to 276.68 per euro by 11 a.m. in Budapest, heading for its strongest closing level since Sept. 7.
Greece and its creditors agreed on the need for more budget cuts to comply with bailout terms after more than a week of meetings in Athens. Representatives from the so-called troika of the European Commission, European Central Bank and International Monetary Fund met with Greek Finance Minister Yannis Stournaras as the parties work to determine whether Greece continues receiving funds from the country’s 240 billion euros ($297 billion) of rescue packages.
Developments in Greece “may lead to the pricing out of a prominent market fear, prompting a continuation of last week’s optimism,” analysts at Budapest-based brokerage Equilor Zrt. said in an e-mailed note to clients today.
The cost of insuring against default on Hungary’s debt with credit-default swaps fell 11 basis points, or 0.11 percentage point, to 434.167 basis points, the lowest since Sept. 9.
To contact the reporter on this story: Edith Balazs in Budapest at firstname.lastname@example.org
To contact the editor responsible for this story: James M. Gomez at email@example.com