EnglishThe exchange rate yesterday for the Euro fell to an eight month low against the leu, mostly due to favorable sentiment of foreign investors in the region. Another reason for the depreciation of the European currency is the high yield for the leu in terms of key interest rates.
Vlad Muscalu, an economist with ING Bank, said: "We may see further appreciation of the leu, sometimes the markets tend to over-react". However, he said the leu won"t drop below 4.1 lei, as the "NBR will not allow the leu to appreciate further".
Bank dealers said that compared to Friday, all currencies gained, but the leu did so the most, as it continued its rise since the beginning of the year.
Dealers also said there was no major demand for foreign currencies in the market yesterday, with some of them suspecting a share capital increase which led to a major sale of foreign currencies. At the same time, the dollar depreciated further on Friday and yesterday, and the evolution of the leu will be tied by that of the dollar, dealers say. Also yesterday, the estimates published by Reuters announced an average exchange rate of 4.2 lei/Euro at the end of the year.
• THE EUROBONDS ISSUE COULD HAPPEN IN Q1 2010
The ministry of finance may issue its eurobonds in q1 2010, in case "market conditions allow it", secretary of state in the ministry of public finance Bogdan Drăgoi said yesterday.
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
