The leu closed at 4.42/4.4215 per euro, from 4.4145/4.418 per euro Monday. Yesterday, the local market was closed for the Labor Day break.
The national currency took a hard hit in the few days following the government’s collapse Friday. The leu lost around 1% versus the euro since Friday and over 2% since January.
However, central bank governor Mugur Isarescu said the leu’s depreciation could also point to a shift in macroeconomic fundamentals, central bank governor Mugur Isarescu said Wednesday.
“For now, the decline seems to be a reaction to the political events… However, it’s possible the fundamentals could be shifting, after three years during which the inflation differentials were not in our favor,” Isarescu told a news briefing.
The central bank Wednesday put its main rate on hold at a record low of 5.25% a year, as political uncertainty following the government’s fall ended a monetary easing process initiated in November 2011.
The leu’s indicative fell to a new record low of 4.4168 to the euro, from 4.397 to the euro Monday. Against the US dollar, the leu’s indicative declined 1.06% on the day to 3.3594 units.
On the money market, overnight rates were at 4.2%-4.7% a year, little changed on the day.