Romanian Leu Gains First Time in Three Days; Bond Yields Steady
Romania’s leu gained for the first time in three days as an extension of a cap on repo funding to a seventh week offset paring of risk appetite after European officials failed to agree on a debt-reduction package for Greece.
The leu strengthened 0.1 percent to 4.5306 by 6 p.m. in Bucharest, heading for its highest level in more than a week. Yields on 2019 Eurobonds were unchanged at 4.901 percent, according to data compiled by Bloomberg.
The Banca Nationala a Romania extended its 6 billion lei ($1.7 billion) limit on funding via repurchase agreements even as demand rose to 30 billion lei at an auction on Nov. 19, according to data compiled by Bloomberg. The central bank introduced the cap on Oct. 8. European finance ministers failed to agree on a debt-reduction package for Greece after battling with the International Monetary Fund over how to bring the recession-wrecked country back to fiscal health.
“European finance ministers failed to overcome division over how fast to cut Athens’ debt and called a further meeting next week,” Mihai Patrulescu, a Bucharest-based economist at UniCredit Tiriac Bank SA wrote in a 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.
To contact the reporter on this story: Andra Timu in Bucharest at firstname.lastname@example.org
To contact the editor responsible for this story: James M. Gomez at email@example.com