Raiffeisen: there are still chances to see leu strengthening further over the short term |
Autor: Bancherul.ro
2009-04-08 21:05 |
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When the IMF financing package of EUR 20 bn was announced (on 25 March), the leu started to appreciate, said Raiffeisen analyst Martin Stelzeneder.
This accelerated last week as investor risk aversion on international markets waned. Last week, the leu strengthened by around 2% against euro, and this move was also in line with developments in the
other regional currencies.
Given the positive impact of the financing package and the benign sentiment on the international markets, we think that there are still chances to see leu strengthening further over the short term.
Appreciation might also be supported by “stop-loss orders” from previous short positions in RON.
Market interest rates for short-term maturities (O/N and 1 week) are already positioned in the vicinity of the monetary policy rate (10%).
Interest rates for longer maturities also continued on their downward trend last week.
Both leu appreciation and the decrease in the domestic interest rates reflect a fall in the country’s risk premium.
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