Romania’s leu headed for the longest winning streak against the euro in more than five months, helped by improved economic indicators.
Industrial output expanded 5.4 percent in February from a year earlier, up from 3.4 percent the previous month, the statistics office reported yesterday. Retail sales advanced in the same month, while the economy expanded more than initially estimated in the fourth quarter of last year, the agency reported last week.
“The leu was propped by a swath of sound macroeconomic releases,” analysts at BRD-Groupe Societe Generale (BRD) SA, including Bucharest-based Roxana Hulea, wrote in a note today.
The leu appreciated for a fifth day, adding 0.1 percent to 4.3910 per euro by 1:34 p.m. in Bucharest and boosting this year’s advance to 1.2 percent, according to data compiled by Bloomberg. The currency gained 0.2 percent yesterday.
Romania’s economy averted a recession in the fourth quarter, growing more than initially announced, as gross domestic product rose a seasonally adjusted 0.4 percent from the previous three months, the statistics service said on April 3. That compares with a 0.1 percent expansion announced in a March 6 preliminary report. Retail sales grew 1.4 percent in February, the agency reported on April 2.
“Should industrial output remain flat in March, the seasonally-adjusted quarterly growth of the first quarter would be 2 percent, the fastest since the first quarter of 2011,” Vlad Muscalu, a Bucharest-based economist at ING Bank Romania SA wrote in a note.
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