Consumer confidence is recovering amid expectations of a softer central bank policy. Decrease in demand for the US currency as a “safe haven” is also due to the expectation of further reduction of interest rates by the US Federal Reserve System.
Investors are actively moving into risk assets. The South Korean won strengthened by 1.09%, the Australian dollar added 0.5%, while the Chinese yuan and Japanese yen rose by 0.2%. The euro strengthened against the U.S. currency, rising to $1.1642.
The Moldovan leu shows multidirectional dynamics, weakening slightly against the dollar due to local factors, but steadily following the strengthening of the euro. The National Bank adjusted the rates of major currencies against the background of global events. As Moldova’s economy is strongly tied to the European market and transfers to euro, the general improvement of market sentiments provides moderate support to the national currency, restraining sharp fluctuations.
The inflow of European currency to the population from abroad has not weakened, experiencing temporary fluctuations. In January-April, the volume of remittances increased by more than a quarter compared to the same period last year, amounting to the equivalent of $615 million. Transfers in Euro account for 83.5% of all receipts and demonstrate the largest annual growth of funds transferred to the population from abroad.
