The leu opened flat at 4.45/4.4515 per euro and ranged between a high of 4.4475 per euro and a low of 4.4515 per euro in early action, amid light volumes. In the afternoon, however, the leu fell to 4.455 per euro as volumes increased.
The national currency depreciated after the parties in the ruling coalition voted to dismiss the presidents of the two parliament houses, stirring loud protests among the opposition parties.
“Investors (…) suspect these replacements are all about suspending President Traian Basescu. The players forecast political instability in Romania, which will lead to a weaker leu, wider spreads and higher bond yields,” said one dealer.
The central bank set the leu’s reference at 4.4505 to the euro, slightly weaker on the day. Against the US dollar, the leu’s indicative lost 0.4% to 3.5347 units.
In the money market, overnight rates were flat at 4.8%-5.3% a year.