International record highs

“The record euro-dollar rate does not directly influence the national currency exchange rate, which is rather affected by unfavorable data on the evolution of the US economy. The Fed could cut the key rate again, which will influence the stock exchanges,” according to a declaration for Business Standard by Nicolaie Alexandru-Chidesciuc, Senior Analyst with ING Bank Romania. The national currency depreciated yesterday against the euro, to RON 3.6474/€1, the loss also correlated with the depreciation of currencies in the region.

The Bucharest Stock Exchange (BVB) was marked by a series of corrections, as investors faced both uncertainty on financial markets and a need to ensure profits. Following the depreciation of the dollar, the price of oil rose on the New York Stock Exchange, to an all-time high of $102.08/per barrel.

According to ING Bank analysts, a maintaining of a high price on oil will lead to an increase in the price of domestic fuels, and implicitly to supplementary inflationary pressures. “BNR will be forced to make other key rate increases, in addition to the one already expected in March, of 0.5 percentage points,” added Chidesciuc.

Gold also rose to a record high of over $960 per ounce, as a result of placements by investors, driven by the depreciation of the dollar and the rise in the price of oil.