Forint down again

Forint tumbled to a new all-time low of 284.3 against the euro yesterday. It became the worst performing currency in June in the whole world by dropping more than 7 percent in one month. Forint is trading in the weaker part of its fluctuation band now, an unprecedented phenomenon since the establishment of the present exchange rate regime. Yesterday''s slide was mainly a result of the decision of the Federal Reserve to increase interest rates by 25 basis points. The National Bank of Hungary does not plan to intervene in the market, said Henrik Auth, deputy head of the monetary council. VGO