Leu Widens Loss Vs Euro, Exchange Rate At 4.1073

05.03.2011 By Florentina Dragu

Romania’s leu continued to retreat against the euro in mid trade Tuesday and the central bank’s reference weakened 0.5% to 4.1073 units, the lowest level in three weeks.

Against the US dollar, the leu's indicative lost nearly 1% on the day at 2.7775 units.

The leu opened at 4.092/4.095 per euro, from 4.0935/4.0943 per euro at Monday's closing. It further lost ground, pushed down by foreign currency demand, and hit an early low of 4.112 per euro.

At around GMT1000, the leu traded at 4.107/4.108 to the euro.

The leu's evolution was unmoved by the central bank's monetary policy decision. The bank left its key rate unchanged at 6.25% a year for the eighth straight time, as expected, as it continues to battle high inflation.

On the money market, overnight rates fell slightly to 4.8%-5.3% a year, from 4.9%-5.4% a year a day earlier.