Leu Ends Down Vs Euro In Line With Region

01.06.2014 By Bogdan Neagu

The Romanian leu weakened against the euro Monday, following the regional trend, but the transferred volumes were reduced in a mostly quiet session.

The emerging currencies weakened in the past week as a consequence of US dollar’s rise against the euro. Generally, when investors turn to the dollar as a safer bet than the euro, the currencies in the Central and Eastern Europe are falling as they are perceived even riskier than the single currency.

However, the leu’s decline is milder, as it fell in December as well, while the Hungarian forint and the Polish zloty gained up to 1.5% against the euro in the last month of 2013.

The leu opened at 4.4915/4.4945 per euro, weaker than 4.487/4.489 per euro at Friday close.

It traded in a narrow range above 4.49 units, and closed at 4.4935/4.496 to the euro after a quiet session.

Romania’s central bank set Monday the leu’s exchange rate at 4.4947, the weakest level in six months.

On the money market, overnight rates stayed around 1%-1.5% a year, considerably lower than the central bank’s key rate of 4%.