The meltdown of the local currency in the early days of 2009 was faster than the market had anticipated, as most of the analysts were expecting a depreciation of leu down to 4.2 against euro in first quarter of this year.

“4.2 lei/euro threshold appears to be relatively resistant. I believe all the negative economic outlook has contributed to the meltdown of the leu. We observe a mild depreciation trend for emerging currencies in the region, but not as sharp as in Romania”, said Ioan Birle, senior dealer at Banca Transilvania, quoted by NewsIn.

Leu slid to 4.2 units against euro in early trades, whereas at 10:20 it recovered to quotations below this threshold. At 10:30, the banks were buying euro at 4.1855 and sell it at 4.1985 lei.