Raiffeisen Research: chances for further gains for the leu |
Autor: Bancherul.ro
2011-07-07 17:03 |
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On Monday, 4 July 2011, the rating agency Fitch upgraded Romania’s long-term foreign currency sovereign rating to “BBB-“ (investment grade) from “BB+” (non-investment grade). The rating outlook was set as “stable”, said Raiffeisen Research.
"This upgrade reflects Romania's progress in recovering from the effects of the financial crisis, evident in a return of GDP growth, a strong export performance, narrowing in the current account deficit and reduction in its budget deficit," said Fitch.
The leu gained 0.6% on the decision. In an interview with Bloomberg, central bank vice-governor Popa said that the rating upgrade reflects the economy’s improved fundamentals and that he sees “a medium to long-term appreciation trend” for the leu.
We think that the news is positive for the leu. Taking into account last month’s sharp depreciation, the recent decrease in uncertainty on external markets and the positive view of non-resident players on the leu, we see chances for further gains for the leu in the coming days.
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