Romania’s currency approaches all-time low

The Romanian currency has reentered this week into a depreciation path against the European single currency and approaches again the all-time low level registered last month.

The exchange rate rose on Wednesday by 0.2 percent to 4.7576/EUR, the third day in a row of increase, National Bank of Romania (BNR) data show.

The EUR/RON pair approaches again the all-time low of 4.7648/EUR registered on January 25.

The fresh depreciation of the Romanian currency was unexpected by the analysts given the higher interest rates in the market.

“We look for a 4.7400-4.7550 range for today with prohibitive cost of carry discouraging RON short positioning,” ING Bank analysts said on Wednesday in a research note.

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US dollar lost 0.1 percent to RON 4.1938.

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, rose on Wednesday to 3.25 percent, a 3-month high.