“We do not rule out a depreciation of the leu beyond 4.6 versus the euro if negotiations for the formation of a new government become a long drawn out affair,” said Eugen Sinca, an analyst with Erste.
The leu hovered around the 4.535 level against the euro Monday, unaffected by news that the ruling center-left coalition USL has won majority votes for both Senate and the Chamber of Deputies at Sunday’s elections.
Although USL and incumbent Prime Minister Victor Ponta could enjoy the support of 65-70% of the local MPs, President Traian Basescu has stated on various occasions that he would not back Ponta for a new mandate as premier.
This “increases market uncertainty in the short term,” Erste said.