Romanian Leu Hits 3-1/2 Yr Low vs Euro, Seen Hovering Around 3.85-3.86 per Euro Until Day’s End

The leu has been caught in the whirl of risk aversion and panic selling on international markets in the last three weeks following bank collapses in the U.S. and Europe and uncertainty about the approval of a $700 billion U.S. government bailout package for the financial sector.

"The leu hit 3.8840 per euro about an hour ago. Trading was dominated mainly by foreign currency-buying orders and stop-loss deals," one dealer told SeeNews.

"Things have calmed down a bit now and probably the leu will hover around 3.85-3.86 [per euro] until the end of the day," the dealer added.

The leu has not been traded as low versus the euro since January 2005. It closed at 3.8200/8250 per euro on Thursday, weaker than 3.7420/7480 on Wednesday.