"The forint fell more than 2% and slumped to a two-year low against the euro, on Thursday breaching the Ft 300 level for a sustained period. The currency fell to 301.7 per euro over worries that the upcoming EU summit will not be able to find solutions to the eurozone debt crisis and on speculation of a possible downgrade of Hungarian debt.If that scenario unfolds, the exchange rate may hit the all-time high of Ft 317 against the euro, Napi Gazdaság writes, citing analysts. The National Bank would have to intervene at those levels, the daily adds.
Against the Swiss franc, the forint fell sharply to 245.
State debt manager ÁKK sold fewer five- and ten-year bonds than planned at Thursday’s auction, as demand was weak and yields rose.
Investors subscribed the entire amount of three-year bonds on offer, Ft 20 billion.
Stocks also slid due to negative investor sentiment, with OTP shares down 4%."
Source: Hungary Around the Clock
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21.10.2011