Romania Leu Slips Vs Euro Amid Political Uncertainty

Friday, the leu closed at 4.2105/4.2145 per euro.

The leu’s evolution was negatively affected by political uncertainty, as the opposition parties threaten with a no-confidence motion against the government, which is expected to assume responsibility in parliament later today for a series of austerity measures.

According to dealers, the central bank stepped into the market and sold euros to prevent a stronger depreciation of the leu.

Elsewhere in the region, the Polish zloty was gaining 1% to the European currency, while the Hungary’s forint was up 1.5%.

The Romanian central bank set the leu’s reference at 4.218 units per euro, the weakest rate since January 4.

Against the US dollar, the leu’s indicative retreated over 2% to the all-time low of 3.5243 units.

On the money market Monday, overnight rates were at 6.2%-6.7% a year, up on the day.