The leu closed at 4.44/4.444 to the euro, from 4.4035/4.406 to the euro Tuesday. The leu depreciated more visibly compared to its neighbors, which lost between 0.2% and 0.3% versus the euro.
The national currency opened at 4.41 per euro and further lost ground, amid a negative sentiment in the region as investors are concerned the US central bank may trim its bond-purchasing program sooner than initially expected.
Market participants said local investors were also influenced by comments of Romanian central bank governor Mugur Isarescu, who said his bank would do “everything possible” to help narrow the gap between interest rates on domestic and foreign currency loans.
The statement prompted investors to sell lei to prevent possible losses should the central bank decide to lower its main lending rate again at the next monetary policy meeting.
The central bank set the leu’s reference at 4.4304 versus the euro, 0.4% weaker on the day. Against the US dollar, the leu’s indicative lost 0.5% to 3.3365 units.
In the money market, overnight rates fell to 2%-2.5% a year, from 2.5%-3% a year Tuesday, amid liquidity surplus.