The dinar weakened against the euro for the second consecutive day on Wednesday, dropping by 75 paras and setting the official middle exchange rate at RSD 100.6602 dinars per euro, the National Bank of Serbia (NBS) said Wednesday.

This year, the national currency's exchange rate has been below the psychological barrier of RSD 100 per euro from April 29 until yesterday, and saw its peak level on May 23, when the middle exchange rate was RSD 96.7007 per euro.

The NBS told Tanjug that yesterday's sharp fall of the dinar against the euro, by RSD 2, had been due to the relatively high turnover in the foreign exchange market of around EUR 180 million (on Tuesday, June 13), while a somewhat increased demand for foreign exchange had been caused by the maturity of government inflation-indexed bonds denominated in euros, issued in December 2010, and by the announcement of future issuance of securities.

The Tuesday turnover indicates normal functioning of markets where the demand for foreign currency is fully met in direct interbank trading, without the participation of the NBS in the foreign exchange market, the central bank said.