The leu opened down at 4.465/4.467 per euro, from 4.4534/4.454 per euro at Tuesday close. It further lost ground, pushed by higher demand for euros from non-residents, and hit an early low of 4.473 per euro.
Market participants said the central bank has stepped in to prop the leu, which returned below 4.47 per euro around midday. However, the national currency switched to losses once again, hitting the day’s low of 4.479 per euro before stabilizing at around 4.475 per euro in the second half of the day.
The Social Liberal Union earlier Wednesday started procedures to oust President Basescu, a day after the lawmakers voted to dismiss the presidents of both Parliament chambers and the Ombudsman, who were allies of Basescu.
The central bank set the leu’s reference at 4.4715 to the euro, the weakest rate to date. Against the US dollar, the leu’s indicative weakened to 3.5542 units, from 3.5347 units Tuesday. The leu also declined against the Swiss franc, trading at a 10-month low of 3.7236 units.
In the money market, overnight rates were flat at 4.8%-5.3% a year.