ING: Romanian leu may strenghten further in the near future

Newsroom 18/08/2014 | 15:12

The Romanian leu traded at 4,4380/EUR on Monday and strong ratings based on European stock exchange indicators suggest that the increase in value for Romania’s national coin will continue, according to a report from ING Bank Romania.

ING economists also claim that the leu hasn’t fluctuated very strongly last week, after the exchange rate settled on Thursday near 4,44 RON / EUR. It did weaken slightly on Friday, when the local representatives weren’t present.

“The currency swap market didn’t experience any shifts over the course of local participants being absent. Short term interest rates continue to be valued at 0.6 percent and the 1M-3M segment at 1,70 – 1,95 percent. We expect that in today’s auction for 7Y government bonds worth RON 0.3 billion to indicate a yield of 4.18 percent given that this financial instrument was valued at 4.18-4.10 percent at the end of the meeting on Thursday and given recent volatility”, according to the ING Bank report.

Also on Monday, Romania’s Finance Ministry on Monday raised a planned 300 million lei (EUR 67.6 million) in a reopening of its 10-year bond due June 2021, at an average of 4.14 percent a year, slightly higher than at the previous auction.