The leu closed at 4.5175/4.5195 per euro, 0.1% weaker from 4.512/4.5145 per euro Tuesday.
The local currency opened at 4.519 to the euro and moved in narrow ranges throughout the day, amid slightly higher volumes.
Romania’s ruling Social Liberal Union, or USL, broke up after the Liberals voted Tuesday evening to withdraw their ministers from the cabinet. The rupture comes after months of political bickering between the liberals and the leftist social democrats.
“The financial markets had a mild reaction to the breakup, but it’s important the upcoming government continues structural reforms and adopts a prudent approach in implementing new fiscal policies,” said Mihai Patrulescu, senior economist with UniCredit Tiriac Bank.
“The leu could come under downside pressure following political tensions,” Patrulescu told Mediafax.
Romania’s central bank set the leu’s reference at 4.5144 versus the euro, modestly stronger on the day. Against the US dollar, the leu’s indicative was 3.2854, little changed from 3.2858 Tuesday.
In the money market, overnight rates were at 2.1%-2.6% a year.