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Leu's appreciation - either through BNR intervention or because market expects higher inflation
The leu has gone up, which is explained either through the intervention of Romania's Central Bank (BNR) or because the market is expecting higher inflation and eliminates the speculations on reducing the key interest rate in the future, which seemed very likely at the start of the year, Cristian Cochintu, Admiral Markets' analyst, told Agerpres.
'The foreign currency market is extremely volatile and also strange this period. The leu is surprising, especially through its appreciation versus the euro. Its rise versus the dollar is easy to explain: on the one hand there is the repatriation of yens from the American market, and on the other hand the moment of global panic has been overcome, at least for the time being, but the euro was among the strongest currencies,' Cochintu explained.
The leu appreciated by 0.25% on Friday versus the euro and BNR announced a reference rate of 4.1683 lei for 1 euro, down 1.05 bani compared with Thursday, when the euro was quoted at 4.1788 lei. The leu has thus reached a new high in the past 10 months compared to the euro. The exchange rate has never been so low since May 10, 2010, when the euro was quoted at 4.1641 lei. The U.S. dollar has lost ground to the leu, as BNR established an exchange rate of 2.9553 lei, down by 2.54 bani (0.85%), compared with 2.9807 lei on Thursday. The gram of gold was quoted on Friday at 134.6223 lei, down 19.42 bani (0.14%), compared to 134.4281 lei established in the previous session.