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The reference exchange rate inches to 4.2124 lei per euro, on a market dominated by apathy

Foto: www.bloombiz.ro

Romania's national currency, the leu, depreciated 0.07 percent at the reference exchange rate settled by the central lender BNR at 4.2124 lei per euro, on an apathetic market, with low volatility and few transactions.

BNR established a reference exchange rate of 4.2096 lei per euro yesterday. The leu floated within a small range on opening, near 4.21 - 4.2150 per euro, and at 1:15 p.m. banks were buying an euro with 4.2115 lei and selling it for 4.2185 lei.

The board of BNR decided yesterday to slash the main interest rate from 9 to 8.5 percent a year, in line with expectations, but surprised the market by reducing the minimum mandatory reserves for foreign currency passives from 35 to 30 percent.

In the region, the Polish zloty fell from 4.0988 to 4.1246 versus the euro and the inched to 4.10, while the Hungarian forint lost from 265.73 to 267.52 per euro and then came back to 266.50.

For the U.S. dollar, BNR's reference exchange rate inched 0.1 percent to 2.9262 lei per dollar, from 2.9232 in the previous session. On international markets, the U.S. currency advanced from 1.4422 to 1.4369 per euro in the morning and at 1:15 p.m. Romania's hour the euro was traded for 1.4388 dollars.

Interbank interests for overnight deposits stood at 8 - 8.5 percent a year, close to the new main interest rate of 8.5 percent a year.

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