Leu Eases Loss Vs Euro, Peers Weaken

05.23.2011 By Andrei Circhelan

The Romanian leu closed Monday weaker against the euro, after easing the decline seen throughout the session, while other currencies in the region were continuing to lose ground to the euro.

The leu closed at 4.1205/4.123 to the euro, compared to 4.114/4.1155 at closing the day before.

The leu opened lower against the euro Monday, tracking the currencies in the region, which started to retreat after Standard & Poor's downgraded Italy's outlook to negative on weak economic performance.

Romania's currency fell further in mid-session until touching the day's low at 4.131 to the euro, before switching trend on euro sale orders placed by corporate clients, dealers said.

The Romanian central bank's reference rate weakened 0.4% to 4.1263 per euro, from 4.1091 per euro in the previous session.

On the money market, overnight rates continued their increase, to 4.36%-4.86% a year, from 4.13%-4.63% a year previously.