Serbia's central bank buys euros to stem dinar gains

BELGRADE: Serbia's central bank purchased euros on Wednesday to rein in dinar gains due to increased demand for the local currency and low liquidity in the interbank market, dealers said.

The central bank, which a day earlier purchased 40 million euros, started buying the common currency as the dinar traded at around 123.20 to the euro, 0.14 percent stronger than the previous close. After the intervention, the dinar weakened modestly to 123.25 at 1355 GMT.