Friday, June 22, 2007

Hungarian Forint Heads for Second Weekly Gain Versus Euro on Carry Trades

(Bloomberg) -- Hungary's forint is set to advance
for a second week versus the euro as investors continue the so-
called carry trade, attracted by the European Union's highest
interest rate.

The forint headed for its biggest two-week gain in nine
months as investors borrow in low interest-rate currencies such
as the Japanese yen and Czech koruna, and invest in higher-
yielding assets elsewhere. Hungary's central bank holds its next
policy meeting June 25, when economists expect it to hold its
benchmark rate at 8 percent. The European Central Bank's rate is
at 4 percent.


Read more at Bloomberg Currencies News

No comments: