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Forint weakens slightly on interbank forex market(Hungarian News Agency Via Thomson Dialog NewsEdge) Budapest, June 26, 2007 (MTI-ECONEWS) - The forint was trading at 247.20/30 to the euro late on Tuesday, compared to 247.00/05 on Monday, weakening a slight 8bp to 12.43pc on the strong side of its +/-15pc intervention band. The forint traded between 247.05 and 248.40 to the euro during the session on lively trade. Dealers said some demand probably came from investors buying Mol shares. Monday's unexpected 25bp rate which took effect on Tuesday had little effect on the FX market, they said. The forint was trading at 183.40/50 to the US dollar late on Tuesday, practically unchanged from Monday. On the forint market, O/N rates rose to 8.60/75pc, well over the new central bank base rate of 7.75pc where it fell after the Monday rate decision. The surprise rate cut and end-of-month liquidity shortage caused some confusion. Dealers said the liquidity squeeze is likely to ease from Wednesday as banks decided to purchase HUF 277.9bn of National Bank of Hungary two-week bonds on Wednesday, HUF 271bn less than the bonds maturing. The total stock of the bonds outstanding will drop to HUF 777.4bn as a result. On the secondary market for government securities, yields continued to fall, losing about 25bp over two days, in line with the new base rate. Copyright 2007 Hungarian News Agency, Source: The Financial Times Limited |