The leu and BVB hit by Bear Stearns effect

The lender, one of the major U.S. investment banks, was taken over by its JP Morgan rival, signaling a severe decline of the U.S. economy.

Locally, the leu depreciated by 1.37 percent, down to RON 3.7608/€1, according to the exchange rate posted by the Romanian National Bank (BNR). On the stock market, the BET index, of the top 10 companies with highest liquidity, declined 3.26 percent, while the BET-C composite index closed 3.17 percent on Friday’s quotation.

Following a historic low of the dollar, at $1.5905/€1, most European stock exchanges were also in the red.

In a surprise move, the U.S. Federal Reserve lowered the refinancing interest rate to an annual 3.25 percent, from 3.5 percent, and is expected to cut the key interest rate by as much as one percentage point today.