Negative sentiment spread throughout the markets as players started seeking shelter from potential losses. Although most investors believe the EU will find solutions for the state debt crisis, the lack of euro area consensus, with rising international pressure in the backdrop, strikes at the confidence level in the market.
The leu opened at 4.255/4.257 to the euro, slightly weaker than yesterday’s closing levels, around 4.25 against the euro.
Within the first hour of trading, the leu continued to lose ground and traded at 4.288/4.29 to the euro at around 10:15 local time.
The central bank computed Monday the leu’s reference rate at 4.2272 to the euro, 0.56% weaker than the previous reference.
On the money market Tuesday morning, overnight rates rose to 2.7%-3.2% a year, from 2.4%-2.9% a year Monday.