Romanian Leu Ends Flat vs Euro in Calm Market

The leu ended at 4.2900/2940 per euro, compared to 4.2890/2940 per euro on Monday.

The Romanian currency opened near the 4.292-per-euro notch and was traded in a tight range and moderate volumes, one dealer told SeeNews. “The market is keeping an eye on politics,” the dealer said.

Romania’s prime minister-designate Lucian Croitoru, an advisor to the central bank governor, is trying to form a new government by the end of this week and to convince opposition parties to back the line-up he will move to Parliament. Last week, the country’s minority government fell in a no-confidence vote.

“Political instability will increase the uncertainty regarding the dynamics of the exchange rate in the upcoming period. Up to now, the leu has not been very strongly affected, but risks of additional weakening in the period ahead remain,” Raiffeisen Zentralbank Research said in a note on Tuesday.

The BNR set its reference exchange rate at 4.2911 per euro on Tuesday, compared to 4.2903 per euro on Monday. For the U.S. dollar, the BNR set its reference exchange rate at 2.8662 versus Monday’s 2.8697.

Turnover on the interbank leu deposit market rose to 3.324 billion lei on Monday from 3.143 billion lei on Friday. The BNR will issue Tuesday’s turnover figures on Wednesday.

Interest rates on overnight leu deposits fell to 9.18%/9.75% on Tuesday from 9.75%/10.25% on Monday.