Hungarian Forint Gains on Pledge to Avoid Default

The Hungarian forint gained today for the third consecutive day after Hungary’s government pledged to cut the budget shortfall, easing the concerns about the possible default.
Hungary, the first member of the European Union received the international bailout, needs to cut the budget deficit to 3.8 percent in 2010 from the last year’s 4 percent. The government’s pledge to take actions in order to avoid the default eased the concerns somewhat, but not all economists were convinced by these promises as no details about the planned measures to avoid the default were announced yet.
USD/HUF dropped to about 235.34 today as of 10:24 GMT after it opened at 236.27.

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