Leu Dips Vs Euro In Quiet Market

04.20.2011 By Florentina Dragu

Romania’s leu edged lower against the euro in late trade Wednesday and closed slightly weaker on the day at 4.088/4.09 units, amid a quiet market.

Romania's leu edged lower against the euro in late trade Wednesday and closed slightly weaker on the day at 4.088/4.09 units, amid a quiet market.

A day earlier, the leu closed at 4.0865/4.088 to the euro.

The leu opened down at 4.182/4.185 per euro, but started to advance shortly after.

At mid-day, the leu traded around 4.085/4.086 to the euro. It later changed trend and lost part of its gains, amid low volumes.

The Romanian central bank set the leu's reference at 4.0858 per euro, the strongest rate since March 2010.

The leu also advanced against the greenback, hitting the highest level since December 2009, at 2.8186 units.

Central bank Mugur Isarescu said earlier Wednesday that leu's appreciation is difficult to cap, as interest rates are already low and buying euros would create liquidity surplus in the market.

On the money market, overnight rates rose modestly to 2.4%-2.9% a year, from 2.2%-2.7% a year Tuesday.