Romanian Leu Ends Steady vs Euro, Unaffected by C-Bank Decision to Keep Key Rate Unchanged

The negative sentiment towards the emerging markets persisted and trading volumes were low in the absence of investors, who are waiting for a lull in global markets, Ovidiu Chiriac, dealer with Bucharest-based Eximbank told SeeNews.

Romania's central bank (BNR) on Thursday decided to keep the key interest rate unchanged at 10.25%, after seven hikes in a roll, quoting improved inflationary outlook amid falling oil prices and moderation of credit expansion.

The leu, along with other emerging currencies, was caught in the middle of risk aversion and panic on the international markets in the last two weeks, following the collapse of U.S. Lehman Brothers and the Fed rescue of American International Group, setting several multi-month lows against the euro.

BNR set its reference exchange rate used for statistical purposes at 3.6773 lei per euro on Thursday, compared to 3.6690 on Wednesday. For the U.S. dollar, the reference exchange rate was set at 2.5001 versus Wednesday's 2.5029 lei.

Interest rates on overnight leu deposits remained almost unchanged at an average 12.58%/13.08% on Thursday compared to 12.59%/13.09% on Wednesday.

Turnover on the interbank leu deposit market rose to 1.6 billion lei on Wednesday from 749 million lei on Tuesday. The BNR will issue Thursday's figures on Friday.

Following are Thursday's average bid and ask quotes of commercial banks on Romania's interbank market. They were calculated at 11 a.m. (0800 GMT) by the BNR, based on data provided by 10 commercial banks (in pct):