Romania's currency, the leu, lost ground to 3.7575 against the euro due to slump of the U.S. dollar to a new historical low, after the Federal Reserve cut its discount rate with a quarter of a percentage point, dealers said.
- Publicitate -
The euro stood at 3.7210 lei in the morning then it grew constantly 0.98 percent to 3.7575 lei in only one hour, before the opening of the local exchange session. After 9 a.m. the leu recovered gradually. At 10:25 a.m. banks bought the euro with 3.7410 lei and sold it for 3.7480 lei.
All the emergent currencies dropped against the euro and idled against the U.S. dollar close to the levels seen on Friday. The leu, the forint and the Turkish lira started to gain ground while the Czech crown was the only stable one, according to the chief dealer with Banca Transilvania, Ioan Birle.
The U.S. dollar tumbled this morning to the historical low of 1.5905 against the euro after the Federal Reserve surprised the market by cutting the rate on direct loans to banks from 3.50 percent to 3.25 percent per year due to the severely damaged economy. Analysts expect Fed to harshly cut the monetary policy interest rate at its meeting on Tuesday.
The U.S. dollar stood at 1.5772 against the euro at 10:25 Romania's hour.
The interbank interest rates for overnight deposits remained close to the level of the monetary policy interest rate (9 percent per year).
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