Hungary Assets Rally Into Sunday’s Ballot on Orban Exit Bets
A surprise victory for Orban’s Fidesz party could send the currency weakening to 405-410 per euro.
Photographer: Simon Wohlfahrt/BloombergHungary’s election rally has pushed the country’s bonds, stocks and its currency to the brink of multi-year highs ahead of Sunday’s ballot, which investors anticipate will end Prime Minister Viktor Orban’s 16-year rule.
The forint this week touched the strongest level against the euro since 2023 while Budapest’s BUX stock index is 2% below a record high. The extra yield investors demand to hold Hungary’s dollar bonds instead of Treasuries has also shrunk by a hefty 75 basis points in the past year, within close reach of levels last seen in 2022.