The leu closed at 4.5455/4.5575 per euro, from 4.5715/4.574 to the euro Monday.
Elsewhere in the region, the leu’s peers were losing up to 0.6% against the euro.
The leu opened at 4.5650/4.5670 versus the European common currency and further advanced, supported by interventions from the central bank. According to market participants, the bank stepped in and sold euros in the first half of the session, lifting the leu to a high of 4.535 to the euro.
The central bank set the leu’s exchange rate at 4.5378 per euro, the strongest rate since July 12.
Romania’s currency gained 2.3% against the euro in the past two days, recovering half of a 4.4% loss recorded in the past month due to mounting political tensions which shook investment sentiment.
In the money market, overnight rates were slightly up at 5.1%-5.6% a year, from 4.8%-5.3% a year in the previous day, amid declining liquidity.
The central bank Monday has capped the amount offered to commercial banks through its repurchase agreement facility for the first time in almost four years. It has injected RON6 billion into the market, half of amount requested by lenders.