February 3, 2017 / 5:08 PM / 10 months ago

UPDATE 1-Serbia's central bank sells 45 million euros to bolster dinar - statement

(Adds central details from bank statement)

BELGRADE, Feb 3 (Reuters) - Serbia’s central bank sold 45 million euros on the local interbank market on Friday to bolster the dinar which remained weak due to seasonal demand and expectations of U.S. Federal Reserve interest rate hikes.

The bank had sold 30 million euros on Thursday.

In a statement, the bank said it intervened “to absorb excessive daily oscillations of the exchange rate” of the dinar against the euro, the preferred foreign currency in the European Union candidate country. So far in 2017, the bank has sold 315 million euros to prop up the dinar.

On Thursday, central bank governor Jorgovanka Tabakovic said the dinar’s weakness this year was due to seasonal factors such as increased energy imports and expectations of U.S. rate hikes.

At 1640 GMT, the dinar was trading at a rate of 123.98. (Reporting by Aleksandar Vasovic; Editing by Hugh Lawson)

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