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Hungarian PM bemoans strong CHF

By   || September 1, 2010 at 12:45 GMT
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The firming of the franc poses risk to the Hungarian economy, says the PM. The weakening forint versus the CHF causes higher than expected loan losses for Hungarian banks.

During the credit bubble, Hungarians loaded up on “cheap” Swiss franc denominated mortgages only to watch the housing market collapse and the franc strengthen to record levels, making the loans exponentially more expensive than when they were taken out.

USD/CHF broke key 1.0130 support earlier and now targets 0.9980. It trades at 1.0080 at the moment.

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