The US dollar is higher against the Hungarian forint on Monday morning with markets shifting into the safety of the dollar and out of the currencies from countries more sensitive to the global and European growth outlook. The spread of the coronavirus is ringing alarm bells about the much-hoped-for economic rebound in Central and Eastern Europe this year.

USD/HUF was lower by 101 pips (+0.33%) to 305.92 with a daily range of 303.14 to 306.04 as of 10am GMT, with the currency pair now at highest level since October 2019.

The forint

The dollar benefitted and the forint was hurt by data this morning showing business sentiment in Germany unexpectedly fell. As a member of the European Union, Hungary stands to benefit when the Union’s largest economy Germany is doing well. The IFO index for business ‘expectations’ saw a shock decline to 92.9, below the 93.9 reported previously and well below the 95 consensus forecast from economists. Business confidence in Germany had seemingly had a boost in the final three months of 2019 from the prospect of a trade deal between the US and China. Talk that US President Donald trump is turning his attention next on Europe could be the cause of the drop in the New Year.

The spread of the coronavirus is seeing some of the riskier emerging market currencies fall to new yearly lows on Monday. According to the Chinese health ministry there are 2,744 coronavirus cases with 80 deaths. Scientists have also confirmed the virus can spread before symptoms become visible, increasing its ability to spread quickly before being detected.

The US dollar

There is a rising concern about the negative impact the coronavirus outbreak and the resulting travel restrictions will have on global growth. Under the terms of its new trade deal with China, involving large agricultural purchases, the United States should be relatively insulated. That is underling some support for the US dollar. China has reportedly locked down travel in the province of Hubei, particularly in Wuhan where driving has been banned. Long-distance bus services from Beijing to other parts of China have been cancelled. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.