Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Romanian Leu Retreats From One-Month High; Bond Yields Decline

Don't Miss Out —
Follow us on:

Nov. 7 (Bloomberg) -- Romania’s leu snapped a four-day rally, retreating from its strongest level in more than a month.

The currency weakened 0.1 percent to 4.5183 per euro by 5:10 p.m. in Bucharest, after strengthening 0.2 percent to the highest since Sept. 24 in intraday trading, according to data compiled by Bloomberg. Yields on 2019 Eurobonds declined five basis points, or 0.05 percentage point, to 4.97 percent.

Governor Mugur Isarescu said on Nov. 2 he is limiting funding at the central bank’s weekly repurchase agreement auctions and intervening in the foreign-exchange market to support the currency. Policy makers may also use other tools should the “pressure on the exchange rate continue,” he said today at a conference in Bucharest.

“The challenge now for the central bank is to maintain an optimal mix between capping liquidity -- so that the money market rates do not increase dramatically -- and the intervention in the foreign-exchange market,” analysts including Bucharest-based Mihaela Neagu from OTP Bank Nyrt. wrote in a note today.

The central bank maintained a cap on funding to lenders at 4 billion lei ($1.1 billion) on Nov. 5, compared with 5 billion lei it offered on Oct. 22, 6 billion lei on Oct. 8 and 12.6 billion lei on Oct. 1. Demand at the repo auction was 15.6 billion lei.

The relative strength index on euro against the leu fell to 33 yesterday, indicating the leu rallied too far relative to the common European currency. The pair rebounded to 35 today.

“If the pressure on leu by investors’ positions or by other internal and external elements will continue then we may have to take other measures” to prop up the currency, Isarescu said.

To contact the reporters on this story: Andra Timu in Bucharest at Irina Savu in Bucharest at

To contact the editor responsible for this story: James M. Gomez at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.