Hungary’s undercapitalised domestic companies are struggling to achieve the productivity needed to offset rises in its currency, which hit a record high against the euro this week.

The forint, which reached 234.50 against the euro this week, from 260 in April, has been rallying since the central bank’s surprise decision in late February to abandon a policy of maintaining a fixed trading range against the euro. The currency hit a five-year high in June before this week’s record.