Romanian Leu tempers gains vs Euro, exch rate at 4.2394

The leu opened higher at 4.233/4.235 per euro, from 4.235/4.2365 per euro at closing Tuesday, and further gained ground, with dealers suspecting covert interventions from the central bank.

The leu ranged between an intraday high of 4.2275/4.2295 per euro and a low of 4.2455/4.249 per euro.'Such interventions may seem strange since lower rates have been tolerated no later than last week and the current economic climate would call, in theory, for a weaker exchange rate, particularly given the high inflation. The operation may have aimed to limit possible downward pressures in the future,' said Vlad Muscalu, analyst at ING Bank Romania.On the money market Wednesday, overnight rates fell slightly to 2.2%-2.7% a year, from 2.3%-2.8% a year in the previous day.

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