Romania’s RON falls to fresh all-time low vs. EUR

Romania’s currency, RON, has reached on Tuesday a fresh all-time low against the European single currency, the exchange rate rising to 4.6822/EUR, National Bank of Romania (BNR) data show.

On Monday, the reference exchange rate was RON 4.6771/EUR. The previous all-time low against the European single currency was reached on January 11, 2019, of 4.6782/EUR.

Experts warn that RON’s depreciation is normal, due to large current account and fiscal deficits, but expects the central bank to step in.

On Monday, the central bank eased the pressure on RON through an unexpected deposit tender of RON 12.9 billion, reducing the excess liquidity in the market.

“The somewhat surprising NBR deposit auction eased some of the upside pressures on the EUR/RON. (…) With no serious pressures to test the upside potential, we will be paying attention to other indirect hints (liquidity management, official fixing) to assess the range of NBR’s comfort zone for the pair,” ING Bank analysts said on Tuesday.

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US dollar gained 0.4 percent to 4.0973 RON.

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, declined on Tuesday to 2.89 percent, approaching the 7-month low reached last week (2.88 percent).