The Hungarian forint weakened against both the US dollar and the euro on Monday, erasing earlier gains that had been supported by optimism over Middle East peace prospects and declining oil prices.
The currency traded above 352.5 against the dollar and reached 308.5 against the euro, marking a clear reversal in sentiment after the euro had briefly dipped below the 350 mark earlier in the week.
This shift underscores the fragility of the recent relief rally in emerging market currencies.
While earlier sessions saw the forint strengthen as markets priced in de-escalation risks, caution has returned, driving investors back toward safe-haven assets.
The pound sterling also softened slightly against the dollar, settling at 1.324.
The reversal highlights how quickly market dynamics can shift when geopolitical narratives lose momentum.