The euro could climb to levels last seen five years ago as a drop in hedging costs would drive flows of more than $200 billion and prop up the currency, according to Morgan Stanley.
European Central Bank President Christine Lagarde said that even euro-denominated stablecoins would create risks to financial stability and monetary-policy transmission, questioning the case for introducing such instruments.
Hungary's new leadership wants the country to adopt the euro by the end of the decade while repairing strained ties with Brussels. But with a weak economy and tight deadlines, experts warn the path will be steep.
