Romanian Leu Firms Vs Euro On Higher FX Sales

The leu closed at 4.2415/4.2440 per euro, 0.4% stronger from 4.2595/4.261 per euro a day earlier.

Elsewhere in the region, the Polish zloty was up 0.25% on the day against the euro, while the Hungary’s forint was gaining 0.6%.

The leu opened flat at 4.2595/4.2610 to the euro and traded in narrow ranges throughout the morning session, amid low volumes.

It later started to gain ground, pushed by higher euro sales, and dealers believe the players anticipate forex sales from the central bank following the disbursement of a EUR1.15 billion loan tranche from the European Commission Wednesday evening.

Investors also expect a positive answer from the International Monetary Fund later today on the disbursement of additional EUR914 million from a loan worth EUR13 billion.

The leu hit the day’s high at 4.24 per euro toward the closing bell.

Romanian central bank set the leu’s reference at 4.2455 to the euro, 0.5% stronger on the day.

On the money market Friday, overnight rates rose to 4.2%-4.7% a year, from 1.8%-2.3% a year Thursday.