News » Forint Goes Lower as Borrowing Costs Rise

The Hungarian forint declined today, though it currently attempts to regain strength, as the result of the debt auction wasn’t favorable and the rating agencies downgraded the nation’s credit rating.
Hungary sold 15 billion forint ($62 million) of bonds. That’s 18 billion forint below the target. The government rejected all bids for three-year notes. Yield on securities increased to the highest level in more than two years.

Standard & Poor’s cut Hungary’s credit rating below the investment grade last week, while Moody’s Investor Service slashed the nation’s sovereign rating to junk a month ago. The European Union and the International Monetary Fund stopped talks about a bailout for Hungary on concerns that the discussed measures might curb independence of the country’s central bank.