Romanian Leu Falls for Straight Third Day as Companies Buy Euros
The Romanian leu weakened for a third day, its longest losing streak since Dec. 5, as companies bought euros to cover their foreign-currency needs.
The leu dropped 0.2 percent to 4.4384 per euro by 4:37 p.m. in Bucharest today. The currency is up 2.2 percent since Romanians elected lawmakers on Dec. 9, making it the best performer among emerging-market currencies tracked by Bloomberg in the period.
“A pickup of the natural commercial demand for hard currency” is weakening the leu, Mihai Tantaru, an economist at ING Bank Romania SA in Bucharest, said in a note today. “We see the leu caught in the range of 4.42-4.44 against the euro for this year’s last couple of sessions,” he said.
The leu appreciated to the strongest level in more than seven months this week on improved investor appetite as Prime Minister Victor Ponta’s new government won a confidence vote in parliament on Dec. 21. Ponta is counting on a two-thirds majority in the legislature to pass a 2013 budget and start talks with the International Monetary Fund and the European Union in January to renew the nation’s stability accord.
Yields on Romania’s 2016 euro-denominated bonds fell two basis points, or 0.02 percentage point, to 2.98 percent today, according to data compiled by Bloomberg.
To contact the reporter on this story: Irina Savu in Bucharest at email@example.com.
To contact the editor responsible for this story: James M. Gomez at firstname.lastname@example.org