USD vs RON Price Chart
The real-time Price Chart of the USD vs RON at CAPEX.com is presented in an interactive way including the USD/RON trading conditions. The Real-Time USD 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 Dollar vs Ron price today.
Breaking down the USD/RON
The base currency is USD, and the counter currency is RON. The USD/RON price shows how many Romanian Lei are needed to buy one dollar. Bringing together the largest global currency and an emerging market currency, the pair belongs to Forex exotics along with USD/TRY, USD/MXN, USD/PLN, USD/HUF etc.
Similar to all investments, there are both potential advantages and disadvantages if you decide to include USD/RON to your trading portfolio.
- Increased volatility: the price movements associated with exotic currencies like USD/RON tend to be much more volatile than those on major currency pairs. The upside of this is that, if your trade pays off and things move in the direction you expect them to, it can enhance your profitability. However, it can enhance losses also if the market moves against you.
- Portfolio diversification: USD/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: Exotic currency like USD/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.
- Lack of liquidity: This means that exotic pairs such as USD/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 USD/RON.
The Dollar
The United States dollar (symbol: USD; also abbreviated US$ to distinguish it from other dollar denominated currencies) is the official currency of the United States and several other countries.
The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color.
The monetary policy of the United States is conducted by the Federal Reserve System, which acts as the nation's central bank.
>> EURUSD analysis & 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 USD/RON Real Time Price Chart
The real-time price and the USD/RON Chart can be useful from several points of view. For those who want to actively speculate on the USD/RON price, rather than invest for the long term, price charts are an essential tool. Traders or short-term investors can analyze the Dollar 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 USD/RON chart to identify price trends and support and resistance areas.
Long-term investors can also make effective use of the USD/RON real time Price Chart. A long-term USDRON 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 USD/RON traders may use charts to try to identify price trends or to identify potential price support areas where they open positions.
How did the USD/RON Price perform in 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 US dollar and Euro, never falling more than 0.5% from its peak value during any month or quarter of the year.
This stability allowed for a consistent USD/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 USD/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 USD/RON Price go above 5.00 in 2023?
After a relatively stable 2022, could USD/RON experience a higher level of volatility in 2023? What are the experts' forecasts and how will the Dollar perform against the national currency in 2023?
Trading Economics forecasts USD/RON to be priced at 4.69652 by the end of this quarter and at 4.94580 in one year, according to their global macro models projections and analysts' expectations.
According to the algorithm-based forecasting website Wallet Investor, the USD/RON will reach 4.765 level in 1 year.
Based on their forecasts, a long-term increase is expected, the Forex rate prognosis for 2028 is 5.365.
What are the key drivers of the USD/RON price?
One of the key factors is the economic health of the Romania and the USA. If the Romanian economy grows faster than that of the US, RON may consolidate against the dollar, and vice versa.
If you want to speculate based on USD/RON price fluctuations, it may be wise to closely watch reports released by two related financial institutions – the National Bank of Romania (BNR) and the Federal Reserve (Fed).
In general, traders pay special attention to the adjustment of interest rates. Both BNR and Fed make 8 interest rate announcements a year. Overall, when the interest rates in the USA exceeds those in Romania, then the dollar usually strengthens.
Another major factor affecting the USD/RON prices is the market sentiment. During the risk-off environment, currency markets exhibit recurrent patterns, as the U.S. dollar (and other few currencies such as Japanese Yen and Swiss Franc) appreciates against emerging market currencies (like the Romanian Leu)
How to speculate on the USD/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, USD /RON is traded for speculative or hedging purposes. But remember, trading the USD/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 USD/RON. In addition, USD/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 USD/RON Chart to get the information you need on USD/RON price today
With CAPEX.com's real-time USD/RON chart you can track the historical evolution of the US Dollar vs Romanian Leu exchange price over the years.
It is necessary to perform a basic analysis before speculating on USD/RON price fluctuations. There are many factors that could impact the US Dollar 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 USD/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 USD/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 USD/RON price can be extremely volatile.
With the real-time USD/RON chart available on CAPEX WebTrader, you can stay up to date with the latest changes in the US Dollar against the Romanian Leu price from your mobile phone and directly from your web browser.