Romanian Leu Strenghtens vs Euro on Investor Optimism

The leu ended at 4.2580/2630 per euro, compared to 4.2630/2680 per euro on Monday.

The leu was backed by increased appetite for risk of investors following gains on global stock markets, one dealer told SeeNews. The Romanian currency opened near 4.26 per euro level and then appreciated slightly, he said.

Last week the leu neared the 4.3-per-euro mark amidst political uncertainty following the break-up of the country’s two-party government coalition. All ministers from the left-wing Social Democratic Party stepped down on Thursday after President Traian Basescu endorsed the dismissal of Interior Minister Dan Nica, affiliated to the party.

Romania’s central bank, BNR, set its reference exchange rate at 4.2619 per euro on Tuesday, compared to 4.2670 per euro on Monday. For the U.S. dollar, the BNR set its reference exchange rate at 2.8921 versus Monday’s 2.9187.

Turnover on the interbank leu deposit market edged down to 1.339 billion lei on Monday from 1.343 billion lei on Friday. The BNR will issue Tuesday’s turnover figures on Wednesday.

Interest rates on overnight leu deposits fell to 9.61%/10.11% on Tuesday from 10.84%/11.38% on Monday.