Romanian Leu Slumps Beyond 3.8-per-Euro on Risk Aversion

The Romanian currency closed at 3.7420/7480 per euro on Wednesday, compared to 3.7500/7550 on Tuesday.

“We are also very shocked,” one dealer told SeeNews. “There is a risk aversion on the international markets. The euro also depreciated versus the U.S dollar, the Swiss frank and the Japanese yen and that had its impact on all the currencies in the region,” he said.

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