After setting a negative record yesterday, the Hungarian forint continued its fall against the euro today on fears that international lenders would refuse a bailout for Hungary.

By mid-morning, the forint tumbled to a new record low of 323.40 against the euro, after closing at 320.27 on Wednesday.

Meanwhile, the average yield, or interest rate, on ten-year sovereign bonds rose to 11.30 percent from Wednesday's 10.80 percent, while the price of insurance against default of bonds or CDS (credit default swap) reached a negative record of 721.

The Budapest stock exchange could not avoid the turmoil either, its BUX index falling by 3.71 percent to 15,959 points by 0930 GMT.

Investors were fleeing Hungary on fears that bailout talks with the International Monetary Fund and the European Union would fall through, prompting the government to tap the reserves of the central bank MNB, analysts said.

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