NBR had announced an exchange rate of 4.2116 lei per euro yesterday.

The leu opened at 4.20 units per euro and started to lose ground in the early trades but only slipped to a maximum exchange rate of 4.2090 lei per euro. At 1:15 p.m. banks bought the euro with 4.2055 lei and sold it for 4.2095 lei.

NBR decided to cut the monetary policy rate from 9 percent to 8.5 percent per year, according to analysts' expectations, but surprised the market by cutting required reserve ratio for foreign currency from 35 percent to 30 percent, which would unload more cash for banks, in the context of reducing external financing.

In the region, the Polish zloty lost ground from 4.08 to 4.1175 versus the euro and the Hungarian forint followed a similar trend, decreasing from 264.80 to 267.50 units per euro.