Hungarian forint hits three-week low amid rising gas prices

The Hungarian forint reached a three-week low against the euro, trading at approximately 367.5 HUF per EUR. This depreciation coincides with natural gas prices hitting a nearly four-year peak on the European energy exchange, exceeding 97 euro per megawatt-hour.

Market experts from OTP Global Markets attribute the rising gas prices to Middle Eastern tensions and concerns regarding the potential loss of Qatari LNG supplies this winter. Additionally, European gas storage levels are reported at 75% following the start of the heating season, significantly lower than the five-year average of 86%.

While the forint has weakened, analysts note that this is part of a broader regional trend affecting the Polish zloty and Romanian leu. On the global front, pressure on bond markets has eased, with the 10-year US Treasury yield falling below 5%.

Regarding the potential adoption of the euro, a UniCredit Bank study indicates that the currency already impacts the Hungarian economy. Approximately 65% of Hungarian small and medium-sized enterprises conduct transactions in euros, and 44% report that forint exchange rate volatility creates a tangible burden on their operations.