Romanian Leu Ends Tad Weaker vs Euro, Awaits Direction from C-bank, Parliament

The leu ended at 4.3050/3100 per euro, compared to 4.3000/3090 per euro on Friday.

"The leu closed in slight depreciation, it was quite stable during the day. I expect the leu to appreciate tomorrow," one dealer told SeeNews.

He added that two major events may influence the leu's exchange rate in the next two days: the central bank's rate-setting board meeting on Tuesday and the vote in parliament on the new cabinet proposed by premier-designate Lucian Croitoru on Wednesday.

Local analysts expect BNR to cut its monetary policy rate by 25 basis points or to keep it unchanged at 8.0%.

Political uncertainty has been putting pressure on the leu since the beginning of Ocotber after the country’s minority government fell in a no-confidence vote. Romania is currently governed by an interim cabinet.

BNR set its reference exchange rate at 4.3047 per euro on Monday, compared to 4.2955 per euro on Friday. For the U.S. dollar, the BNR set its reference exchange rate at 2.9152 versus Friday’s 2.8927.

Turnover on the interbank leu deposit market rose to 1.861 billion lei on Friday from 1.627 billion lei on Thursday. The BNR will issue Monday’s turnover figures on Tuesday.

Interest rates on overnight leu deposits rose to 10.02%/10.52% on Monday from 10.00%/10.50% on Friday.