Monday, the leu closed at 4.5325/4.535 per euro.
The currency opened slightly down at 4.5355/4.5375 per euro, but started to gain ground shortly after, hitting the day’s high of 4.4935 to the euro in the second half of the session.
Market participants said the leu’s appreciation was fueled by mixed factors, including the higher interest rates following the central bank’s decision to cap its weekly repurchasing operations, better-than-expected economic data for the second quarter, as well as covert interventions from the central bank to support the currency.
Romania’s gross domestic product expanded 0.5% in the second quarter, after a decline of 0.2% in the previous three months, according to data from the country’s statistics institute. For the first six months of 2012, the GDP grew at an annualized rate of 0.8%.
Statements by the head of the International Monetary Fund’s mission to Romania also contributed to the leu’s appreciation, traders said. Erik de Vrijer said earlier Tuesday that the leu will likely advance against the euro once the political crisis ends.
The central bank set the leu’s reference rate at 4.5186 to the euro, the strongest level in the past five weeks. Against the US dollar, the leu’s indicative gained 0.6% to 3.6569 units, from 3.679 units in the previous day.
In the money market, overnight rates rose to 6%-6.5% a year, from 5.3%-5.8% a year Monday.