HUF exchange rates in Q1 2025
The HUF/EUR exchange rate has been through a ride over 2024, but since January, EUR is back under HUF 400. USD is also back under HUF 370 since early March. How is this happening? Read on to find out.
HUF exchange rates in 2024
2024 was not the year of the Hungarian Forint. Over the course of the year, its exchange rates weakened by 7.3% regarding the EUR, and 14.5% regarding the USD. However, this year-end result was still an improvement compared to the lowest point of 2024.
HUF was at its weakest just before Christmas: on December 19, EUR 1 cost HUF 416.56, and on December 20, USD 1 cost HUF 401.04. This was still very far from the historical lowest point in October 2022, when EUR 1 cost HUF 432.94, and USD 1 cost HUF 445.73.
After Christmas, HUF started to gain some strength, and closed the year on a growth curve:
- EUR 1 cost HUF 411.40, a 1.2% improvement
- USD 1 cost HUF 397.63, a 0.8% improvement
2025 developments so far
Since January 2025, HUF has been slowly gaining against both EUR and USD, and exchange rates have been steadily decreasing (with some small hiccups here and there). EUR has been below HUF 400 all this year, while USD arrived below HUF 370 by the start of March.
The strengthening of HUF in early March is probably due to the interests rates raising for government securities, which was in response to the increasing inflation experienced in February 2025. For reference, the interest rates for the discount treasury bills (DKJ) were raised from 6.03% to 6.15% between March 10 and 13. In government bonds with a maturity of 3-10 years, we saw an increase of 30-40 percentage points.
Latest events
Last week (March 17-21), HUF started to weaken again due to the latest world events, but it seems to maintain its position below HUF 400 for EUR and below HUF 370 for USD. Regarding exchange rates, the biggest event seems to have been the political turmoil in Türkiye caused by the arrest of the strongest political opponent of the current president. Other notable events of the week with an impact on HUF exchange rates included the latest EU summit and the next steps in supporting Ukraine.
The persistently good results are probably also supported by the promising PMI figures published Monday morning, as well as tentative news about the U.S. cancelling the introduction of further tariffs.
This week additional information to watch out for will include the Hungarian interest rates to be announced by the National Bank on Tuesday (March 25), and the developments in Türkiye as well as the negotiations of Saudi Arabia between the U.S. and Russia.
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