UPDATE 1 - Serbian Dinar Weakens Further, Dealers Expect C-bank Intervention

The dinar lost ground to 89.15 per euro after closing at 88.30 per euro on Friday, a local dealer told SeeNews around 1040 GMT.

There has been no central bank intervention so far in the day, he said, adding that the central bank is expected to step in.

“Just now, the market is a mess, the dinar went over 89.00 per euro,” another dealer told SeeNews at 1037 GMT. He said later, at 1135 GMT, the dinar firmed to 88.70-88.80 per euro, adding the bank might skip an intervention as liquidity is not very low.

“It [the dinar] went over 89.00 but no deals were concluded at that level,” a third dealer said around 1115 GMT. “The demand is very big, like in the past days. Hopefully, the bank will intervene today, if not, who knows how much further the dinar might weaken.”

He said the dinar closed at 87.80-88.30 per euro on Friday.

“Nothing particular is happening, really. The dinar just weakened in the morning, then lost some more ground and here it is now at 88.90-89.30 [1115 GMT],” the third dealer said.

Last week, the central bank, NBS, injected 120 million euro ($151 million) in the market to prop up the local currency, which touched a historic low of 89.00 dinars per euro.

($=0.7897 euro)