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Hungary's central bank said Tuesday it has launched a market manipulation probe into "false rumours" it said caused a sharp slide in the national currency the forint last Wednesday.
"Rumours cited by the media on January 29 that Hungary could not pay its debts on foreign currency bonds were false... and negatively affected the exchange rate", the central bank, the MNB, said in a statement.
The forint fell two percent to a two-year low against the euro on January 29, and has recovered slightly since then.
"The goal of the probe is to find out whether the rumours fit the definition of (illegal) market manipulation," the MNB said.
The forint's fall coincided with slides by other emerging market currencies last week.
Analysts also said however remarks by MNB boss Gyorgy Matolcsy on January 29 that Hungary planned to continue a policy of interest rate cuts contributed to the sell off of the forint.