Romanian Leu Loses Ground vs Euro on Political Uncertainty

October 3 (SeeNews) - The Romanian leu ended weaker against the euro on Wednesday on political uncertainties in the EU newcomer, dealers said.

The leu opened at 3.3620/40 to the euro and closed at 3.3680/700, weaker than closing levels of 3.3550/600 on Tuesday and 3.3490/3.3500 on Monday, one dealer told SeeNews.

"The foreign investors were fewer on the market today. The leu followed a descending trend on the back of the uncertain outcome of the no-confidence motion against the government," the dealer said.

Romania's Social Democratic Party (PSD) has filed a no-confidence motion against the minority Liberal-led government over alleged stalling of economic reforms in Romania, which joined the European Union in January. It is expected to be voted on later on Wednesday by parliament.

"If the motion passes, the leu might try the 3.40 threshold versus the euro," the dealer said.

The central bank (BNR) set its reference exchange rate, used for statistical purposes, at 3.3711 lei per euro on Wednesday, compared to 3.3524 lei per euro on Tuesday. For the dollar, the reference exchange rate was set at 2.3772 lei versus Tuesday's 2.3648 lei.

Interest rates on overnight leu deposits averaged 6.95%/7.81%, compared to 6.81%/7.67% on Tuesday.

Turnover on the interbank leu deposit market fell to 1.458 billion lei on Tuesday from 3.025 billion lei on Monday. The BNR will issue Wednesday's figures on Thursday.

Following are Wednesday'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 percent):