* Romania leu hits record low vs euro for 2nd day
* Hungarian forint edges up towards 7-mth high
* Emerging stocks, debt spreads steady
* Most emerging markets shut for holiday
By Carolyn Cohn
LONDON, May 1 (Reuters) – The Romanian leu fell to record
lows for a second day in holiday-thinned trade on Tuesday,
bucking the trend for broadly steady emerging currencies due to
worries its international aid deal following the collapse of its
government.
Investors have driven the leu lower due to concerns that a
new administration will ditch unpopular austerity measures
needed to secure International Monetary Fund loans – so far
rejecting efforts by officials to play down such
risks.
“Two factors are affecting the leu today — the political
situation of course with the government falling apart and second
is illiquidity which is linked to the fact that half of Europe
is out,” said Michael Ganske, head of emerging markets research
at Commerzbank.
“With major markets closed, I would not overinterpret market
moves today.”
Continued…
