The leu closed at 4.53/4.5325 per euro, weaker than 4.487/4.489 per euro in the previous day.
Governor Mugur Isarescu said Wednesday that the Romanian leu should fall after the monetary policy decisiones, adding that such a scenario is not certain. He also defined variations of 5% for the leu’s exchange rate as “normal.”
On Wednesday, the central bank cut the key rate by 25 basis points, to an all-time low of 3.75%, and lowered the minimum reserve requirements for both leu and foreign currency denominated liabilities.
The leu opened at 4.502/4.504 to the euro Thursday and continued to lose ground and neared 4.54 to the euro by mid-session. In the afternoon, the leu stabilized below the 4.53 mark.
The central bank set the leu’s reference rate at 4.5290 per euro, a new six-month low.
Against the US dollar, the leu’s indicative was down to 3.3267 units, the lowest level since November 11.
In the money market, overnight rates were at 0.57%-1.08% a year.