Against the US dollar, the leu’s indicative won 2.6% on the day to 3.6997 units.
The leu opened up at 4.63/4.633 per euro, from 4.6375/4.6415 to the euro at Friday close. It further appreciated and hit an early high of 4.565 per euro.
“The volumes were low, but the leu’s appreciation was quite sudden and it’s likely the central bank has stepped in to support the currency,” said one dealer.
He added 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 investors estimate the interest rates on leu loans will go up.
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 repo auction is scheduled for later today.
At around 1:00 pm, the leu traded at 4.573/4.577 to the euro.
In the money market, both overnight and weekly rates were flat on the day at around 4.8%-5.3% a year.