Forint hits record low, stock market recovers slightly
Budapest - The Hungarian forint continued its downward spiral, hitting a new record low of 317.45 against the euro in early trading on Friday.
Although in afternoon trading the currency firmed to around 313 against the euro, this latest dip is worrying news for one of the EU's most fragile economies.
The weakening forint is bad news for ordinary Hungarians, who face increasing monthly repayments on foreign currency mortgages and loans. The forint was trading at around 250 to the euro last summer, before Hungary was hit hard by the global financial crisis.
On Thursday the head of Hungary's central bank, Andras Simor, warned that the instability of the forint is a major obstacle to the country's hopes of joining the eurozone as quickly as possible.
The Budapest Stock Exchange's benchmark BUX index closed Friday up three per cent at 9880 after closing at a five-year record low of 9593 on Thursday. (dpa)
