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.
Turkey’s widening current-account deficit and record low yields will weaken the lira over the next three months, slamming the brakes on this year’s bond rally, according to Barclays Plc, the top forecaster for the currency.
Hungary’s forint, the worst performing emerging-market currency in the past year, will probably rally in 2011 as the government seeks to use private pension fund assets to plug its budget shortfall, according to KBC Groep NV, Barclays Capital and UniCredit SpA.
The top forecaster for the Turkish lira says his prediction for the currency to strengthen by year- end risks being undermined by the country’s external funding needs even as the central bank provides support.
The world’s best bond and currency rally risks reversing as Hungarian Prime Minister Viktor Orban stalls on conditions for a bailout, according to BlackRock Inc., Citigroup Inc. and Royal Bank of Scotland Group Plc.