Romanian leu recovers to 3.69 against euro on help from the central bank and Finance Ministry

Romania's central bank (BNR) surprised the market zesterday with an auction which drew 1.13 billion lei in week deposits at an annual interest rate of 8 percent. The Economy and Finance ministry drew 500 million lei in two-week deposits at an annual interest rate of 8 percent too.

“I don't think the leu can fall any lower than 3.70 against the euro since there is no data to justify further decline besides the negative image investors' held over Romania at the end of last year,” chief dealer with Emporiki Bank Romania, Liviu Arnautu said. “The leu's decline over the past period was natural, yet overrated by speculators,” he added.

Arnautu explained that the leu should start hiking once the BNR and the Finance ministry engaged in supporting monetary and tax policies that would improve Romania's macro economy.

The 3.6978 lei per euro exchange rate posted yesterday by BNR shows a 0.34 percent hike of the leu from 3.7106 lei per euro.

On the international markets, the U.S. dollar fluctuated from 1.4833 to 1.4894 against euro and reached 1.4862 at 2:15 p.m. Romanian hour.

The interbank interest rate for overnight deposits decreased slightly to 7.10 – 7.60 percent per year, below the monetary policy interest of 8 percent per year, on higher liquidity on the market.

Source: NewsIn