Romania’s currency, RON, rose by 0.2 percent on Thursday against the European single currency, the exchange rate falling to 4.6553/EUR, the lowest level since September 20, National Bank of Romania (BNR) data show.
Against the European single currency, Romania’s currency reached the all-time low of 4.6695/EUR on June 21, 2018.
Experts estimate that the central bank will continue to support the national currency.
“The spike in money market yields likely triggered some mild appreciation for the EUR/RON as the pair closed the day some 30 pips lower, around 4.6620. We see downside potential as fairly limited but a test below 4.6600 could occur, particularly if the central bank doesn’t organise a repo on Monday,” ING bank said on Thursday, in a research note.
On Wednesday, the reference exchange rate was RON 4.6644/EUR.
US dollar lost 0.6 percent to 4.0773 RON.
RON’s appreciation is due to lower liquidity in the money market as the central bank stopped this week its interventions through weekly repo operation.
Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, declined on Thursday from 3.25 percent to 3.24 percent.