Thursday, March 24, 2011

Romanian Leu Snaps Five-Day Rally, Drops From Strongest in Year

Romania’s leu, the best-performing currency in the world this year, depreciated from the strongest in almost a year against the euro, snapping a five-day rally.

The leu weakened 0.3 percent to 4.1161 per euro as of 10:41 a.m. in Bucharest after yesterday reaching 4.0994, its strongest intraday level since April 8.

A 1.8 percent rally in the previous five sessions drove up the 14-day relative strength index for the leu-euro pair to 90.5 yesterday, its highest in 5 1/2 years. Readings higher than 70 suggest to technical analysts that a security may retreat.

To contact the reporter on this story: Krystof Chamonikolas in Prague atkchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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