The International Monetary Fund and the European Commission agreed on a 8% increase in public wages as of June, but such a move would require additional costs for the public budget that could reflect in a higher deficit.
The leu opened at 4.405/4.4075 to the euro, slightly weaker from 4.403/4.4035 to the euro at Friday closing.
Within the first hour of trading, the leu was little changed, although other currencies in the region fell slightly. The sentiment on the international markets worsened after Sunday elections in France and Greece, as changes of government could affect proposed debt reduction plans.
The Romanian central bank set Friday the leu’s reference rate at 4.4044 per euro, about 0.1% stronger on the day.
On the money market Monday morning, overnight rates stayed around 4%-4.5% a year.