"Work with every buyer as though that person represents a thousand referrals." - Tom Hopkins

FOREX MARKET
On May 4th, the Romanian market had opened with average quotations of 3.3000/3.3040 which became intraday minimum levels, as RON had lost the support coming from the high short term interest rates. After the NBR announced REPO auction at the indicative amount of RON 3bln, the pair rallied up to 3.3240 level within a couple of minutes. Gradually, the selling pressure eased down and the local currency found some stability in the 3.3150 area.
On Monday, the single currency was quoted at 3.3080/3.3120 bids/asks same as previous trading day's closing. Shortly after, the selling pressure prevailed and pushed EUR/RON until 3.3150 area in the first hour of trading. Around noontime, the pair stabilized in the 3.3100 zone amid thin domestic trading.
On Friday, the weak US Non-farm payrolls flattened the recent rally of the greenback, as the report supported expectations of the market that the Federal Reserve would be cutting rates at least once in 2007. Ahead of US job data, the dollar strengthened until 1.3530 zone, but shortly after the releases USD slipped towards 1.3610 level. The losses of the dollar were limited, as the currency is still sustained by robust US manufacturing and services sectors. On Monday, the EURE/USD is traded in the 1.3600 zone in the first half of the European trading session.

MONEY MARKET
On Friday, the overnight maturities were quoted for 15/25% bids/asks, due to the scarce liquidity conditions on the Romanian money market. The National Bank decided to reduce the high volatility on the domestic money market and held REPO auction for one-week maturity. After NBR's REPO announcement, the ON interest rates fell to 8/14% zone. The National Bank decided to lend to commercial banks with eligible assets RON 3bln to ease on the pressure induced lately in the domestic market by the Minister of Finance. The average accepted interest rate stood at 8.46%, while the minimum accepted rate was in the proximity if the key rate, respectively at 7.26%. The allotment ratio stood at 76%, while the commercial banks were willing to pay up to 12% for the one-week maturities. On May 7th, the overnight interest rates are traded for 9/13% bids/asks, as the liquidity on the domestic market has improved slightly after the REPO auction.