Leu Weakens Vs Euro In Line With Peers

05.05.2011 By Florentina Dragu

The Romanian leu edged lower against the euro in late trade Thursday, tracking the currencies in the region, and closed weaker on the day at 4.1115/4.1135 units.

The leu opened at 4.106/4.108 per euro, barely changed from 4.1055/4.1075 per at Wednesday's closing and traded near 4.11 per euro for the first part of the day.

It later started to retreat, hitting the day's low at 4.114 to the euro.

Romanian central bank governor Mugur Isarescu said at the quarterly inflation report earlier Thursday that the bank targets a stable exchange rate of the leu versus the euro, even if a stronger leu would help the disinflation process on the short term.

The central bank set the leu's indicative at 4.1065 per euro, slightly stronger on the day.

On the money market, overnight rates fell to 4%-4.5% a year, from 4.3%-4.8% a year Wednesday.