Romanian Leu Ends Flat Vs Euro; Neighbors Retreat

04.11.2011 By Florentina Dragu

Romania’s leu lost early gains versus the euro in late trade Monday and closed flat on the day at 4.109/4.11 units, while its peers in the region were losing up to 0.5% against the European common currency.

Romania's leu lost early gains versus the euro in late trade Monday and closed flat on the day at 4.109/4.11 units, while its peers in the region were losing up to 0.5% against the European common currency.

The leu opened at 4.108/4.109 per euro and hit the day's high at 4.104 per euro. It later changed course and traded near 4.11 per euro for the remainder of the session.

Romanian consumer prices rose 0.6% in March from a month earlier, while the annual inflation accelerated to an unexpected 8.01%, the highest level since August 2008, the country's statistics institute INS said earlier Monday.

"The high inflation could indicate the central bank's inclination toward a firmer leu to curb import prices," an ING report said.

The central bank set the leu's reference at 4.1084 to the euro, slightly stronger on the day.

On the money market, overnight rates fell to 2.7%-3.2% a year, from 2.8%-3.3% a year Friday.