“Today’s evolution, just like the downward spikes in the May 8-16 period, was largely due to the bad news from the eurozone. All currencies in the region have fallen against the euro,” said Adrian Vasilescu, adviser to central bank’s governor Mugur Isarescu.
The leu’s exchange rate lost 0.3% on the day to 4.4587 per euro Wednesday, the lowest level on record. Since January, the national currency dropped 3.2% versus the euro.
“Given the jittery feeling in the markets, the slightest negative rumors can trigger immediate, aggressive movements from investors. The central bank is keeping a close eye on the local market and is using the appropriate tools to dampen the shocks,” Vasilescu added.
“However, analysts concur that the efforts made by central banks to mitigate the depreciation of a currency can only have limited effects in the market,” he added.
Vasilescu said the leu has weakened by 1.26% against the euro in May, significantly less than its peers in the region. The Czech koruna lost 1.85% versus the European common currency in the mentioned interval, while the Polish zloty and the Hungary’s forint declined 3.87% and 5.16%, respectively.
“The leu continues to be most resilient to external shocks,” he said.