Korean conflict and fears over eurozone put RON under pressure

The RON yesterday fell to a one-month low against the euro, with the exchange rate reaching 4.31 RON per euro after the conflict in the Korean peninsula escalated and with rising speculations over Portugal and Spain coming under pressure sparking a new wave of aversion to assets considered risky.
The negative news has turned international investors towards investments deemed as safe, with the American dollar and gold gaining ground.
The National Bank yesterday calculated an exchange rate of 4.3082 RON per euro, 1.25 bani (1 RON – 100 bani) more than in the previous day. This is the highest level reached by the euro in the past month. The all-time high had been hit in June, 4.4 RON for one euro.
The Bucharest Stock Exchange, which is celebrating 15 years since opening, responded apathetically to the external news stories, with the few investors still present on the market being already immune. The BET index, which follows the top 10 listed companies, closed slightly up (by 0.07%), while SIFs (Financial Investment Companies), which are more volatile, lost 1.3%.
On the Bucharest interbank market, the euro climbed to 4.31 RON yesterday, despite a supposed discreet intervention from the National Bank, which is said to have sold foreign currency in order for the euro not to increase further. Although it was a quiet session, dealers noticed that this time the NBR did not defend the 4.3 RON mark, as they had suspected in preceding months, which leaves the way open to new increases.