Nov. 20 (Bloomberg) -- Romania’s leu weakened for a second day after the country sold less debt than planned yesterday.
The leu depreciated less than 0.1 percent to 4.5355 per euro by 5.10 p.m. in Bucharest. Yields on 2019 Eurobonds fell one basis point, or 0.01 percentage point, to 4.91 percent, according to data compiled by Bloomberg.
The Banca Nationala a Romania kept a limit on funding at 6 billion lei ($1.7 billion) in its repurchase agreements auction yesterday even as demand rose to 30 billion lei, according to data compiled by Bloomberg. Rising borrowing costs for leu-denominated debt prompted the Finance Ministry to issue 407 million lei in 2014 notes against a target of 500 million lei. The leu has gained 0.5 percent versus the euro since Oct. 8, when the bank first began capping funding.
“The recent gains of the leu looked artificial, driven largely by the central bank,” Mihai Tantaru, a Bucharest-based economist at ING Bank Romania SA, wrote in an e-mailed note today.
A campaign for general elections in Romania started on Nov. 9 as the ruling coalition of Prime Minister Victor Ponta goes head-to-head with the opposition party supporting president Traian Basescu. Parliamentary elections will be held on Dec. 9.
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