So far, however, Hungary has avoided the chaos seen elsewhere in central Europe. No casualties or serious injuries have been reported yet although authorities say around 1,000 people have been evacuated from towns and villages along the river.
So far, around six million sandbags have been used in barriers.
The swollen river is forecast to peak at 8.95 metres in Budapest late today. By morning the water level had already climbed to 8.83 metres, exceeding the previous historic high of 8.60 recorded in 2006.
"The flood peak is approaching the heart of the country. Two very important days are ahead of us, as the capital is the most densely populated part of the country," Prime Minister Viktor Orban said early today.
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Speaking in the town of Esztergom (65 kilometres north of Budapest) where he spent the night, he said the water level there had not increased for hours and that "the city is safe".
The bridge linking Slovakia and Hungary at Esztergom was closed to traffic early yesterday.
Authorities were forced to bring food and water supplies by boat to three villages cut off due to closed roads -- Pilismarot, Domos and Kisoroszi.
Emergency personnel and volunteers worked non-stop through yesterday and overnight to prop up barriers and dykes as previous record water levels were toppled throughout northwest Hungary.
By today morning, however, water levels in several locations in northwest Hungary began to fall.
In Budapest, water has covered roads running along the river since Wednesday, one metro station has been closed, while a special radio station, Flood FM, began broadcasting latest flood news yesterday.
Mayor Istvan Tarlos said yesterday that the most endangered parts of the city -- Margaret island in the centre and the Romai residential area north of the city -- will be safe unless the water climbs to 9.30 metres, nearly a half metre above the forecast peak.
"It is now certain that the water level will not exceed nine metres in Budapest," he said.