Forint at a crossroad

Forint has started to weaken against the euro after news about larger that expected government deficits had spread in the markets. Some experts think the common European currency may worth Ft 252-255 early next year and Ft 258-260 in the second half of 2006. This could have some negative impact on gains available in the stock exchange but a larger impact can be expected from an eventual change in international investor feelings towards emerging markets as large portfolio investors manage Central European stocks in package deal.