Romanian Leu Hits New Record Low, Of 4.5957 Vs Euro, Amid Lingering Political Tension

On Tuesday, the leu stayed below 4.59 versus the euro, until around 11 a.m., and subsequently reached a low of 4.5950 against the euro. After 1 p.m., the leu continued to depreciate.

Claudiu Cazacu, chief analyst with XTB Romania, said the uncertainty on the Romanian political stage and the unfavourable context abroad depreciated the leu versus the U.S. dollar and euro.

Romania’s Parliament will assemble Wednesday to debate and vote on a no-confidence motion submitted by social democrats and coalition partners against their own government. The Social Democratic Party last week withdrew support for its own prime minister, Sorin Grindeanu, just five months into the Cabinet’s administration, amid a power struggle between Grindeanu and party leader Liviu Dragnea.