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

Romania’s currency, RON, has reached on Thursday a fresh all-time low against the European single currency, the exchange rate rising to 4.6764/EUR, National Bank of Romania (BNR) data show.

On Wednesday, the reference exchange rate was RON 4.6722/EUR, also an all-time low. The previous all-time low against the European single currency was reached on June 21, 2018, of 4.6695/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.

“The currency pair consolidated above 4.6700 on above-average turnover. Because this is mostly uncharted territory, we would expect the central bank to smooth volatility and maybe step in at some point to suggest the limits of its tolerance,” ING Bank analysts said in a research note.

US dollar lost 0.6 percent to 4.0573 RON.

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