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Serbian Dinar Heads for Longest Rally in 2012 on Rates

The Serbian dinar strengthened against the euro for a fifth consecutive day, heading for its longest stretch of gains in six months, as investors expect the Balkan nation’s central bank to increase its benchmark interest rate.

The currency was trading 0.6 percent higher at 114.4304 versus the European single currency at 10.28 a.m. in Belgrade, according to data compiled by Bloomberg.

Narodna Banka Srbije will probably increase the two-week repurchase rate at its meeting today, according to a Bloomberg survey of 22 economists. The central bank is seeking to curb inflation after the currency declined to its lowest level on record on May 31 when it was trading at 117.41 versus the euro.

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