In early deals on Tuesday, the Hungarian forint declined to a 5-day low against the dollar after a report showed that Hungary's industrial output plunged in February.

Hungary's Central Statistical Office revealed in a preliminary report that the industrial production dropped 28.9% year-over-year in February, compared with a 22.9% fall in the previous month. On a working day adjusted basis, industrial production declined 28.9% annually in February, after falling 21% in January.

Month-on-month, industrial production decreased a seasonally and working day adjusted 4.1% in February, after a 2.5% decline in the preceding month.

At about 3:40 am ET, the forint hit a 5-day low of 223.88 against the dollar. If the Hungarian currency weakens further, it may likely target the 225 level. At yesterday's close, the dollar-forint pair was quoted at 219.73.

The Hungarian forint that climbed to a 7-week high of 215.90 against the dollar in early European deals yesterday pared its gains in the New York session. Thus far, the forint has lost 4% against the dollar.

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