Leu Ends Stronger Vs Euro On Large Corporate Demand

08.25.2014 By Bogdan Neagu

The Romanian leu went higher against the euro in Monday interbank trading, on increased corporate demand for local currency, dealers said.

The leu closed at 4.3935 to the euro, from 4.4075 to the euro at Friday close.

The local currency started the day on an upward trend, as the trades and the leu’s variations were larger in the first half of the session, but the market cooled down in the afternoon.

The evolution in the morning was caused by some large euro sale orders launched by exporters, which needed lei to pay taxes, dealers said, adding the market lacked a certain direction as the London market was closed for a bank holiday.

The Hungarian forint and the Polish zloty also rose slightly against the European currency.

Romania’s central bank set the leu’s exchange rate at 4.3947 per euro, the strongest in four weeks.

On the money market, overnight rates rose to 1.7%-2.2% a year, from 0.5%-1% a year Friday.