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Hungarian Forint Weakens as Analysts Anticipate Interest Rate Cut

February 10, 2014 at 18:21 by Vladimir Vyun

Hungarian forint coins and billsThe Hungarian forint declined today on concerns that the nation’s central bank will continue easing monetary policy even though economists warn that such actions may hurt the health of the country’s economy.

The Magyar Nemzeti Bank cut its main rate to the record low of 2.85 percent last month, sending inflation to the lowest level in more than 40 years. The central bank also signaled that there is still room for further monetary easing. Analysts believe that prospects for additional interest rate cuts make the forint very vulnerable.

USD/HUF advanced from 226.25 to 228.15 as of 18:21 GMT today.

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