Romania's leu slips to 3.66 per euro, following unstable market

The national currency began the day on the wrong foot, falling by 2 percent in just an hour, on a fickle market, but later on came back to 3.64 per euro, on regional trend.

The leu opened today's session at 3.59 versus the euro, slipping to 3.66 by 10:00 a.m. Afterwards it recovered and at 10:40 a.m. banks were buying an euro for 3.6420 lei and selling it for 3.6520 lei.

"The market is volatile and transactions are scarce. The fall of the leu seems to be directed by regional trends," explained Narcis Noaghea, dealer with Banca Comerciala Romana.

On international markets, the American currency closed in on the euro from 1.2978 to 1.2666. At 10:40 Romanian time, the euro stood at 1.2674 dollars.

Interests for overnight deposits hover at 20-40 percent, but climbed down from the past days' quotas which often surpassed 100 percent.

The central bank modified on October 23 the norm regarding the interbank market functioning and decided it can suspend bank quotas if the interbank offer rate for overnight deposits (ROBOR) outstrip by more than 25 percent the current loan interest of 14.25 percent.

NewsIn