Hungarian Forint Reaches Near Four-Year High as Magyar Government Takes Office

The Hungarian forint strengthened sharply in the days surrounding Magyar's inauguration, with the USD/HUF rate reaching 297.28 on May 8 — its strongest level since February 2022. Against the euro, the forint also appreciated significantly, with EUR/HUF trading around 330-335 by May 10, compared to approximately 400 HUF/EUR at the 2022-2023 inflation and political crisis peak. Financial markets reacted positively to the new government's pro-EU alignment, the EU frozen funds deal roadmap targeting end-of-May reform milestones, and Hungary's lifting of vetoes on EU Ukraine aid packages. The forint had already begun strengthening after Magyar's April 2026 election victory, and continued its rally through inauguration. Analysts noted that the EUR/HUF trajectory would depend on the speed of rule-of-law reforms and whether the €17B EU fund deal was concluded before the August 31 RRF deadline.