November 18 (SeeNews) - The Romanian leu closed stronger versus the euro on Wednesday, touching a five-week high, dealers said.
The leu ended at 4.2800/2820 per euro, compared to 4.2930/2970 per euro on Tuesday.
The leu was traded around the 4.2800 level the whole day between an intraday low of 4.2930 per euro and intraday high of 4.2760 per euro, one dealer told SeeNews.
"I think that political instability is already priced in the rate and the only thing that could bring the leu back is a surprise on regional level," the dealer said.
Romania’s central bank, BNR, set its reference exchange rate at 4.2811 lei per euro on Wednesday, compared to 4.2928 on Tuesday. For the U.S. dollar, the BNR set its reference exchange rate at 2.8650 lei versus Tuesday’s 2.8811.
Turnover on the interbank leu deposit market grew to 5.861 billion lei on Tuesday from 3.935 billion lei on Monday. The BNR will issue Wednesday’s turnover figures on Thursday.
Interest rates on overnight leu deposits rose to 7.65%/8.15% on Wednesday from 5.21%/5.71% on Tuesday.
The Romanian currency has been under pressure due to political uncertainty following the ouster in mid-October of the country's minority government and the rejection of prime minister-designate Lucian Croitoru's cabinet by parliament. Romania’s President Traian Basescu has since nominated the mayor of one of the Bucharest districts, Liviu Negoita, as prime minister-designate.
According to analysts, Negoita, a member of the ruling Democrat-Liberal Party, has slim chances of winning approval for his cabinet in parliament, where the opposition controls two-thirds of the seats.