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Romanian Leu Dn Vs Euro In Early Trade

The Romanian leu opened down against the euro Tuesday, mirroring currencies on emerging markets, and dealers suspect an indirect intervention of the central bank through hard currency selling orders.
Romanian Leu Dn Vs Euro In Early Trade
17 feb. 2009, 10:56, English

The leu opened at RON4.33/RON4.3350 against the euro, lower compared with Monday’s RON4.3120/RON4.3165 closing value.

"The leu depreciated by mirroring the trend of emerging markets, but decreased less than the currencies of the neighboring markets, which account for losses of around 1%. The leu touched a low at RON4.34 versus the euro, and it subsequently started to gain ground. The central bank might have intervened through hard currency selling orders," a dealer said.

Then, the leu continued to lose ground to RON4.3380/RON4.34 against the euro, but at around GMT 0808, the leu was trading RON4.3220/RON4.3260 versus the euro.

The negative sentiment in the region was accentuated by a report of Moody’s rating agency, according to which the deterioration of the economic environment in the central and eastern European countries could affect the lending ratings of the local banks and of the financial groups it controls.

The leu closed at RON4.3120/RON4.3165 to the euro Monday, weaker compared with RON4.2980/RON4.3030 against the euro on Friday.

On the money market Tuesday, overnight rates were at 12%-14% a year.