In the past sessions, the leu gained significant ground against the European currency as sentiment on international markets improved, while investors now expect the local currency to benefit from a relative political stability following the ruling coalition’s clear victory in the parliamentary elections early December.
The leu opened at 4.44/4.443 to the euro, from 4.449/4.451 to the euro at Friday close.
The leu stayed above 4.44 units in the first hour of Monday session, on very low transferred volumes. At around 11:00 local time (GMT0900), the leu extended its early gains, trading below 4.42 per euro for the first time since early May.
Romania’s central bank set Friday the leu’s exchange rate at 4.4451 per euro, an almost six-month high.
On the money market Monday morning, overnight rates rose to 6.9%-7.4% a year, from 5.7%-6.2% a year Friday.