Romania Leu Exch Rate Falls To New 4-Mo Low At 4.1997 Vs Euro

Against the US dollar, the leu's indicative lost nearly 2% on the day to 3.4451, the lowest level in six and a half years.

The leu opened Wednesday's trading session lower against the euro, but began to gain some ground afterwards, following the trend of the regional currencies.

It opened at 4.201/4.204 to the euro, slightly weaker from 4.194/4.196 at Tuesday's closing.

The negative sentiment in the region came after Germany decided to ban the so called naked short-selling of eurozone government bonds. A naked short-selling is when traders sell shares without borrowing them first.

Following the announcement, the euro hit a new four-year low against the greenback, at 1.2146 units.

At around GMT1000, the leu traded at 4.199/4.1995 per euro, after touching an intraday low at 4.203/4.205 per euro.

On the money market Wednesday, overnight rates were at 5.1%-5.6% a year, slightly up on the day.

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