Risk-sensitive emerging Asian currencies opened the week softer after the U.S. and Iran failed to reach a peace deal and the U.S. Navy moved to block Iranian traffic through the Strait of Hormuz, pressuring markets exposed to oil price shocks.
In Hungary, the forint shot up against the U.S. dollar and the euro as investors bet on a boost for the economy following a resounding election defeat for nationalist Viktor Orban after 16 years in power.
The forint rose around 2% to 367.67 per euro in thin Asia trade, touching an almost three-year peak, and gained about 1.7% to 314.04 per dollar, the highest in more than four years.
Goldman Sachs analysts said that the election outcome is expected to boost Hungarian assets as EU fund inflows will be released at a quicker pace, supporting the economy.
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