Banks quoted one euro at RON 3.2550-3.2600 at the opening of yesterday’s session, a level similar to that registered on Monday evening. In the first two trading hours, the leu depreciated RON 0.02 against the euro, because foreign investors sold massive amounts of emerging country currencies, dealers said.
By 11:00 a.m. the exchange rate was RON 3.2800/euro. “At present, the evolution of the leu depends entirely on what happens at European and regional levels, where currencies tend to depreciate,” said Narcis Noaghea, head dealer of Banca Comerciala Romana.
The exchange rate is expected to rise to RON 3.4/euro in the coming three months, and the leu’s downward trend will continue, taking the leu to 3.6 units to €1 in one year, according to analysts of Danske Bank, in a report on the evolution of emerging country currencies in Eastern Europe. Danske Bank estimates one euro will cost 3.5 RON in six months.
The Romanian currency will drop to 2.5 units against the dollar in three months, continuing to depreciate to RON 2.54/$ in February 2008 and to RON 2.77/$ in August 2008.
