Forint Lags Emerging Peers as Energy Hit Amplifies Hungary Risks

Hungary’s forint is the worst performing emerging-market currency during the Iran war, as a jump in energy prices amplifies an array of existing risks to its economy ahead of next month’s elections.

The currency weakened by as much as 0.5% against the euro on Friday, extending this month’s decline to 4%, making it a negative standout among a global selloff in riskier assets. The yield on 10-year local currency bonds rose 18 basis points to 7.42%, the highest since 2023.