Wednesday, the leu closed at 4.174/4.175 to the euro.
The opened down at 4.185/4.187 per euro and further lost ground, hitting the day’s low at 4.25 per euro.
“Players expected the central bank would step in and support the leu from weakening over 4.2 per euro, but, since there were no reactions, they launched a cascade of stop-loss orders. The day’s low was reached at 4.247/4.25 to the euro,” said one dealer.
He added that growing euro sales have pushed the leu slightly higher versus the euro in the second half the session.
According to ING Bank’s analysts, the leu has been losing more ground against the euro in the last two weeks compared to its peers in the region, which suggests that investors see greater risks in Romania. “As long as the situation in Greece remains uncertain, the leu is likely to continue its retreat,” the bank said in a report.
A central bank official said earlier today that the bank is keeping close watch on Greek subsidiaries and has already taken preventive measures against potential financial slippages.
However, the subsidiaries are well capitalized and their solvency ratio is above local average, the official added.
The central bank set the leu’s reference at 4.2088 per euro Thursday, the lowest rate since March. Against the Swiss franc, the leu fell to an all-time low of 3.505 units, as investors seek haven following renewed concerned over Greece’s debt.
On the money market, overnight rates were flat at 2.7%-3.2% a year.