Euro - Romanian new leu

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Euro vs RON Price Chart

The real-time Price Chart of the Euro vs RON at CAPEX.com is presented in an interactive way including the EURRON trading conditions. The Real-Time Euro vs RON price and chart can be viewed on a candlestick chart or a line chart. You can also review numerous timeframes, from 5 minutes to 1 week, to analyze the Euro vs Ron price today.

Breaking down the EUR/RON

The base currency is EUR, and the counter currency is RON. The EUR/RON price shows how many Romanian Lei are needed to buy one euro. Bringing together one of the largest global currencies and an emerging market currency, the pair belongs to Forex exotics along with EUR/TRY, EUR/MXN, EUR/PLN, EUR/HUF etc.

Like all investments there are both potential advantages and disadvantages if you decide to include EUR/RON to your portfolio. 
Among advantages we could mention: 

  • High correlation: there is a positive correlation between CEE currencies, like RON, and Euro. When market sentiment is positive both currencies tend to appreciate, and when it is negative both currencies tend to depreciate - the momentum is mainly influenced by the evolution of the interest rate differential between EUR and RON.
  • Portfolio diversification: EUR/RON can encourage you to broaden your own horizons as well as those of your portfolio. Increasing diversification can help to guard against risk because, if your portfolio is too heavily centered around one market or instrument, it can suffer heavily if movements in that sector go against you. 
  • Fewer market forces: High correlated currency pairs like EUR/RON are not as heavily linked to other instruments such as bonds or stocks. This means that their performance is not as impacted by macroeconomics, and you can shape your strategy with a more refined focus.

Apart from advantages, there are also some cons that every investor should be aware of before including EUR/RON in their portfolio:

  • Lack of liquidity and potential volatility: This means that exotic pairs such as EUR/RON tend to have less trading activity compared to the usual major currency pairs. Price can sharply change direction, jumping and forming gaps, which sometimes complicates the trading process and my result in losses if price goes against you.
  • Higher trading costs: More capital might be required to compensate for the higher spreads associated with EUR/RON.

The Euro

EUR is an official currency of the European Union. On 1 January 1999, it was released as a virtual currency unit for cashless transactions and accounting purposes. The euro banknotes and coins were issued on 1 January 2002.

The euro is unique in that it’s a common currency for 19 out of 28 members of the EU, which are referred to as the Eurozone. Every day, about 338.6 million people use the EUR for payments, making it the second most popular and heavily traded currency unit.

The European Central Bank (ECB) is responsible for the monetary policy in the EU, thus, controls all the euro-related issues. ECB is in charge of maintaining price stability and defining key interest rates for the Eurozone.

>> EURUSD analysis and Price Prediction

The Ron

RON is the abbreviation for the Romanian new leu, the currency for Romania. The first leu coin was minted in Romania in 1870.

RON (the new leu) is the fourth leu in a series of currencies brought about through revaluations since 1867. The new leu replaced the old Romanian leu, currency symbol ROL, in July 2005 at a rate of 10,000 old leu to one new leu. The current version was used alongside the previous leu from March 2005 until December 2006 during the conversion period.

The National Bank of Romania is responsible for the issue of the Romanian leu and as such it sets the monetary policy, holds the currency reserves and manages the exchange rate.

Why to use the EUR/RON Real Time Price Chart
The real-time price and the EUR/RON Chart can be useful from several points of view. For those who want to actively speculate on the EUR/RON price, rather than invest for the long term, price charts are an essential tool. Traders or short-term investors can analyze the Euro vs Ron price on shorter timeframes, looking for support and resistance areas to buy and sell. Traders or short-term investors can also use the EUR/RON chart to identify EUR/RON price trends and support and resistance areas.

Long-term investors can also make effective use of the EUR/RON real time Price Chart. A long-term EURRON trader may not be interested in a 10-minute or one-hour timeframe, but in longer ones, such as daily, weekly, monthly or yearly charts. Like the short-term trader, long-term EUR/RON traders may use charts to try to identify price trends for EUR/RON or try to identify potential price support areas where they open positions.

How did the EUR/RON Price perform during 2022?

2022 was quite a volatile year for the global economic sector, so most of the currencies fluctuated quite a bit during the year. Despite the many global challenges, the Romanian leu was stable throughout 2022, with only small fluctuations in its value. According to historical data, RON remained steady against both the euro and the US dollar, never falling more than 0.5% from its peak value during any month or quarter of the year.

This stability allowed for a consistent EUR/RON exchange rate, may have helped in mitigating planning risk, especially in the case of international transactions or investments involving RON, as there were no sudden variations that could have caused unpredictable losses due to fluctuations in the EUR/RON exchange rate. 

When it comes to trading in the Forex Market, RON has become increasingly popular due to its stability and relatively low volatility compared to other currencies of its size. In addition, the Romanian government has implemented strict economic policies that have helped stabilize the value of the national currency. 

Will EUR/RON Price go above 5.00 in 2023? 

After a relatively stable 2022, could EUR/RON experience a higher level of volatility in 2023? What are the experts' forecasts and how will the Euro perform against the national currency in 2023?

According to ING economists and strategists, the EUR/RON will break the 5.00 level in the 4th quarter of this year and will reach the 5.25 level by the end of 2024. 
The EUR/RON exchange rate will reach 4.91653 by the end of this quarter and 4.92693 in one year's time, according to Trading Economics' global macro projections and models and analysts' expectations. 

According to the algorithm-based forecasting website Wallet Investor, EUR/RON is expected to move higher over the long-term, with the exchange rate forecast for 2028 at 5.150.  
According to Erste Group, the EUR/RON exchange rate 4.95 level should be exceeded at some point after the publication of the April consumer price index figures, which should show a fall of around 3pp in headline inflation due to the statistical base effect.  Erste Group expects a gradual depreciation of the RON against the EUR, in line with the pre-pandemic pattern.

What are the key drivers of the EUR/RON price?

One of the key factors is the economic health of the Romania and the European Union. If the Romanian economy grows faster than that of the EU, RON  may consolidate against the euro, and vice versa.

If you want to speculate on EUR/RON, it may be a good idea to closely watch reports released by two related financial institutions – the National Bank of Romania (BNR) and the European Central Bank (ECB).

In general, traders pay special attention to the adjustment of interest rates. ECB makes interest rate announcements once a month; the BNR does it 8 times a year. Overall, when the interest rates in key European countries exceeds those in Romania, then the euro usually strengthens.

Another major factor affecting the EUR/RON prices is the market sentiment. During the risk-off environment, currency markets exhibit recurrent patterns, as the Japanese yen, Swiss franc, and U.S. dollar appreciate against other G-10 and emerging market currencies.

How to speculate on the EUR/RON exchange rate? 

One of the popular ways to trade Forex is through CFDs (contracts for difference). When you trade CFDs, you are predicting whether the price of one currency will rise or fall against another currency. 

When you trade CFDs on Forex, there is no physical transfer of assets. Instead, your trades take place through a network of financial institutions, on the trading platforms of Forex & CFD brokers. 

In general, EUR/RON is traded for speculative or hedging purposes.

However, trading the EUR/RON exchange rate involves risks. 

For example, there are political risks unique to emerging countries and geopolitical risks that may be based on foreign affairs, such as 'falling value of currency due to rising inflation' and 'falling due to worsening political and economic outlook'. 

Such risks could be reflected in the magnitude of the fluctuations in the EUR/RON. In addition, EUR/RON has a leverage of 1:20 - leverage amplifies your buying power and allows you to open positions with less capital, but also with higher risks.

Browse our live EUR/RON Chart to get the information you need on EUR/RON price today 

With CAPEX.com's real-time EUR/RON chart you can track the historical evolution of the Euro vs Romanian Leu exchange price over the years. 

It is necessary to perform a basic analysis before speculating on EUR/RON price fluctuations. There are many factors that could impact the Euro vs Ron exchange rate in 2023. Even after a relatively quiet year, such as 2022, it is difficult to say where the pair might move in the future. There are many factors that can influence the EUR/RON exchange rate in the future, the most important of which are inflation, banks' monetary policy, interest rates, economic growth and the global geopolitical context or market sentiment, which makes it difficult to forecast the EUR/RON price in the long-term. Also, past performance is not a reliable indicator for future results.

As with any investment, make sure you carefully assess your financial situation before investing in the currency market. The EUR/RON price can be extremely volatile. 

With the real-time EUR/RON chart available on CAPEX WebTrader, you can stay up to date with the latest changes in the Euro against the Romanian Leu price from your mobile phone and directly from your web browser.