Romania’s RON hits fresh 1-month low vs. EUR despite higher interest rates

Sorin Melenciuc 21/09/2018 | 14:09

Romania’s currency, RON, declined on Friday against the European single currency, the exchange rate rising to 4.6559/EUR, the highest level since August 17, National Bank of Romania (BNR) data show.

On Thursday, the reference exchange rate was RON 4.6519/EUR.

US dollar lost 0.6 percent to 3.9517 RON.

RON’s depreciation is normally due to higher liquidity in the money market but interest rates rose to 2-week high.

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, grew on Friday to 3.14 percent, the highest level since September 6.

The biggest worries about Romania are its fiscal policy, political situation, and the external standing, while a possible excessive deficit procedure by the European Commission might bring troubles for RON, Ebury Romania CEO Johan Gabriels recently said in a commentary sent to Business Review.

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