The leu closed at 4.6375/4.6415 per euro, from 4.63 per euro Thursday.
It opened at 4.62 per euro, but turned to losses shortly after and hit an all-time low of 4.651 to the euro in interbank trading.
Investors rushed to sell off the Romanian currency after the country’s top court delayed its ruling regarding a referendum on whether suspended President Traian Basescu can retain his position, thus prolonging a five-week long political crisis.
The leu’s exchange rate hit a record low of 4.6481 versus the euro. The previous negative record, of 4.6397 to the euro, was set on July 24.
The currency has lost 4.4% against the euro over the past month. Since January, the leu weakened by 7.6%.
Central bank governor Mugur Isarescu said Thursday that the leu’s exchange rate has been negatively affected by capital outflows last month, amid political tensions at home and a worsening economic and financial climate in Europe.
However, the bank has sufficient room to support the national currency, Isarescu said, adding that a clarification of the existing political situation would be of “great help”.
Market participants believe the leu will remain under downward pressure over the coming period.
In the money market Friday, overnight rates were flat at 4.8%-5.3% a year.