Leu Rises Vs Euro, Nears 5-Month High

04.29.2014 By Bogdan Neagu

The Romanian leu strengthened against the euro Tuesday morning, nearing 4.44 units for the first time in five months, as the transferred volumes were increasing.

The leu opened at 4.4535 to the euro, from 4.452/4.453 to the euro at Monday close, but it soon turned to gains.

Dealers said there were many euro sale and leu purchase orders launched, so that the local currency strengthened towards 4.44 units.

“The (transferred) volumes are high, in the first hour there were as many transactions as in all Monday session. Euros are sold and lei are bought, to be invested in deposits, as interest rates are quite high,” a dealer said.

On the money market Tuesday morning, overnight rates rose to 3.5%-4% a year, from 3.1%-3.6% a year in the previous day.

On Monday, the central bank set the leu’s exchange rate at 4.4549 per euro, weaker than a four-week high of 4.4517 per euro in the previous session.