Stocks fell, pushing the Standard & Poor’s 500 Index to a third weekly loss, and Treasuries rose amid a slump in emerging-market currencies and weaker corporate earnings. Copper dropped for an eighth day, the longest streak since December 1998.
The forint extended the worst emerging-market slide this week as Hungary’s central bank pledged to support the government’s economic policy, signaling further easing after 18 straight months of interest rate cuts.
The forint slid the most in seven months on speculation an expected cut in U.S. monetary stimulus will undermine riskier assets from countries such as Hungary, where interest rates are forecast to continue declining.
For the best forint forecaster, Prime Minister Viktor Orban’s push to stamp out foreign-currency mortgages is another reason to sell amid record-low interest rates and a government drive to boost local ownership of banks.
Hungary’s central bank tightened the conditions for monetary easing after cutting borrowing costs to a record low, signaling a cautious approach at new head Gyorgy Matolcsy’s first rate decision that boosted the forint.