Depreciation Pressures Diffused

Following its precipitous sell off during H208 and early 2009, the Romanian leu has since stabilised during the second quarter, remaining committed to a RON4.1200-4.2500/EUR band. Currently trading at RON4.2357/EUR and forming a tight flag pattern, a firm break above or below RON4.2400/EUR would set the stage for a move towards the top or bottom end of the wider trend channel, respectively. However, in either case we do not expect the unit to breach RON4.3500/EUR on the upside or RON4.1200/EUR on the downside, in the short term.

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