Dec. 30 (Bloomberg) -- Serbia’s dinar slid to the weakest intraday level since January, headed for the biggest three-day depreciation in almost three years as companies stock up on foreign currencies before state holidays.
The dinar slid as much as 2.4 percent to 107.029 per euro. It traded 2 percent down at 106.6082 by 2:56 p.m. in Belgrade, the world’s worst-performing currency tracked by Bloomberg. A close at that level would mark a 4 percent three-day retreat, the biggest for the period since January 2009.
Companies, including importers of crude oil, electricity and natural gas, buy euros and dollars because the Serbian markets will be closed for a state holiday on Jan. 2 and Jan. 3, according to Sonja Miladinovski, executive board member at the Belgrade-based unit of Societe Generale SA. The dinar’s moves are steeper because of lower market liquidity, she said.
“Demand for hard currencies has expanded a bit toward the turn of the year and many people realized they will have a long weekend,” Miladinovski said in a phone interview today. “At any other time of the year, this type of demand would not have created such pressures on the dinar.”
--Editors: Linda Shen, Gavin Serkin
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