MARKET TALK: Forint Firms On New Central Bank Facility

The forint firms after Hungary's central bank announces a new facility to boost the lending capabilities of the country's banking sector. The bank is introducing two-year collateralized credit, a universal mortgage-bill program and an expansion of the range of eligible collateral. "HUF reaction has been quite strong to this," said Thu Lan Nguyen of Commerzbank, with the currency rising to its highest levels since Sept. 28. But the news should not come as a great surprise, as Hungary's central bank has already been very active in providing liquidity to its banking sector, she says. "Markets might have overreacted," she adds. EUR/HUF currently trades at 288.80, from 291.46 late Tuesday in New York