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Political Divergence Pushes PLNHUF to New All-Time Highs

CEE
  • This week, selling pressure eon HUF has been rising this week following Orban’s victory over the weekend as market has been pricing in renewed political tensions with the EU in the near to medium term.
  • HUF is the worst performing currency among the EM world, down 4.3% against the US Dollar.
  • As opposed to Poland that has been calling for tougher sanctions against Russia, Hungary has kept its distance from the Ukraine war, and responded to Ukraine President Zelensky following the elections’ results calling him an ‘opponent’.
  • The political divergence has been supporting PLNHUF, which tested a new all-time high this week at 82.30.

Source: Bloomberg

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