Reply #50: From Hungary:

[UpInArms]

http://www.portfolio.hu/en/cikkek.tdp?cCheck=1&k=3&i=7510

Hungary's forint, along with several other converging and emerging market currencies, have weakened considerable in the past weeks. The forint depreciated by about 3%, the zloty by 4% and the Turkish lira by 3.5%. The yield of 10-year U.S. bonds is attacking levels at around 4.8% and markets are gearing up for a global liquidity squeeze. Some market players forecast further massive drops in emerging markets, while others believe the panicky mood will soon abate and the monetary tightening of the three key central banks (Fed, ECB, BoJ) will not be dramatic. The question arises whether the forint's easing is part of this process or there are other factors are working in the background.

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