Those "abnormally high" levels give some respite to the leu, ING analysts said in a note. The government rejected all bids at an auction of 2031-expiry bonds as government bond yields continued to edge up after rising more than 10 basis points on Friday.
The 10-year bond traded around 5.17 percent, just below its highest level since July, when Romania's annual inflation rates were above 5 percent. It fell to 3.3 percent in December. But Romanian asset prices came under pressure from taxes on banks and energy firms. That raised concern over the business environment and, by linking the bank tax to interbank interest rate, confusion over monetary policy.
The leu traded steady at 4.7675 versus the euro at 1425 GMT. The Czech crown shed 0.2 percent and the zloty eased 0.1 percent. In periods when Romania's short-term interbank rates are lower, the central bank can keep the leu between 4.75 and 4.8 to the euro with market interventions if the market environment does not deteriorate, the Erste analysts said. Elsewhere, the forint was also steady versus the euro and reached its highest level in almost seven months against the zloty a day before the Hungarian central bank's meeting.