The leu opened down at 4.369/4.370 per euro, from 4.364/4.366 per euro at Wednesday’s closing, and further declined, hitting an early low of 4.373 per euro.
According to dealers, foreign players are betting on a weaker leu and they placed increasing buy orders for euros. Dealers estimate the central bank had to pump around EUR70 million in the market to stop the leu’s depreciation.
Euro sales helped pushed the leu higher again and the national currency traded near 4.36 to the euro for the remaining of the session.
The central bank set the leu’s reference at 4.3564 to the euro, barely changed on the day.
“It seems the central bank didn’t have to intervene again in the second half of the day because the pressure on the leu diminished once European stocks reduced their decline and both the forint and the zloty turned to gains,” said one dealer.
Thursday afternoon, the Polish zloty was up 0.7% against the euro, while the Hungary’s forint was advancing 1%.
On the money market, overnight rates rose to 7.6%-8.1% a year, from 6.8%-7.3% a year Wednesday.