The leu closed at 4.5715/4.574 to the euro, from 4.6375/4.6415 per euro Friday.
It opened at 4.63/4.633 per euro and further appreciated, hitting an early high of 4.565 per euro. Market participants said the leu’s strengthening was rather sudden and might have been prompted by an intervention from the central bank.
The central bank’s announcement that it has capped the amount offered through its repo facility could have contributed to the leu’s appreciation as well, they said.
Earlier Monday, the central bank said it has limited to 6 billion lei (EUR1.3 billion) the amount offered at its weekly sale and repurchase agreement operation, the first such restriction since November 2008. The auction was heavily oversubscribed.
The leu’s exchange rate won 1.6% on the day to 4.574 units, from an all-time low of 4.6481 units in the previous session. Against the US dollar, the leu’s indicative gained 2.6% to 3.6997 units.
In the money market, both overnight rates were flat on the day at around 4.8%-5.3% a year.