The forint gained as investors waited to see whether Hungary will cut the European Union’s highest central bank rates. Bonds declined.
Hungary’s currency appreciated 0.1 percent to 277.95 per euro by 4:45 p.m. in Budapest. The yield on the government’s benchmark five-year notes rose two basis points, or 0.02 percentage point, to 7.142 percent.
The Magyar Nemzeti Bank will probably keep its base rate at 7 percent tomorrow, according to 15 out of 16 analysts polled by Bloomberg. One analyst expects a cut to 6.75 percent. A holiday in the U.K. limited trading today, Peter Karsai, a Budapest- based trader at Commerzbank AG, wrote in an e-mailed note today.
“The forint started off below 278 per euro today and the bank holiday in London made any substantial moves unlikely for the rest of the day,” Karsai wrote in the note.
To contact the reporter on this story: Andras Gergely in Budapest at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com