Romanian Leu’s Exch Rate Hits New 10-Mo High At 4.2051 Vs Euro

Romania’s leu extended early gains versus the euro in mid trade Wednesday and the central bank’s reference strengthened 0.14% to a fresh ten-month high at 4.2051 units, from 4.2108 units a day earlier.

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Against the US dollar, the leu's indicative reached 3.0406 units, from 3.043 units Tuesday.

The leu opened flat on the day at 4.21/4.212 per euro and further gained ground, trading at 4.2045/4.206 per euro at around GMT1100.

The central bank pumped RON447.6 million in a second repo operation earlier Wednesday to ensure banks can meet minimum reserve requirements for March. The first repo was made Monday, when the bank added RON2.2 billion into the market.

According to dealers, the central bank's covert interventions to prop the leu have depleted liquidity and the lenders need more funds to meet minimum requirements.

On the money market Wednesday, overnight rates fell slightly to 5.7%-6.2% a year, from 5.8%-6.3% a year in the previous day.

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