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Romania’s Ctrl Bk Sets Leu Exch Rate At RON4.2985 Vs Euro, Another Record Low

The Romanian leu touched a fresh historical low versus the euro Tuesday on the inter-bank market, on high demand for foreign currency, and the central bank computed an indicative of RON4.2985 to the euro, a new record low against the euro.
Romania's Ctrl Bk Sets Leu Exch Rate At RON4.2985 Vs Euro, Another Record Low
13 ian. 2009, 13:22, English

The leu mirrored the other emerging market currencies in a very volatile trading session. Tuesday is the seventh consecutive day of steep depreciation for the Romanian currency.

Banking dealers said that, on the forex market, the leu opened at RON4.35 against the euro, RON0.027 weaker compared with RON4.3230/RON4.3300 to the euro at the end of Monday’s trading session.

Afterwards, the leu appreciated for a short period, and touched a high of RON4.2950 to the euro, but then the trend reversed once again, and the Romanian currency weakened, a dealer said.

Banking dealers suspect the central bank has stepped in into the forex market to support the leu.

Romanian analysts think that any central bank’s intervention to support the leu would have limited and short-time effects, given investors’ negative sentiment on the region, and the leu will continue to depreciate in the upcoming period.