Romania’s currency recovers 0.6 pct vs. EUR from all-time lows

The Romanian currency has reversed part of its losses against the European single currency since the all-time low registered on Friday as investors begin to be more optimistic. The exchange rate declined on Thursday for the fourth day in a row to 4.7348/EUR, National Bank of Romania (BNR) data show.

Compared to the all-time low of 4.7648/EUR registered on January 25, the RON recovered 0.6 percent.

On Wednesday, the reference exchange rate was RON 4.7569/EUR, also an all-time low.

Analysts say RON’s depreciation is based on improved sentiment on the foreign markets.

“The Romanian leu followed its regional peers yesterday and strengthened over 100 pips against the single currency. (…) Markets seem in an optimistic mood following the Federal Reserve’s apparent dovish twist, hence we expect the EUR/RON to continue to test lower,” ING Bank analysts said on Thursday.

The RON is also regaining value against other major global currencies. US dollar lost 0.8 percent to RON 4.1265.

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, stood on Thursday to 3.06 percent.