Today's M^3 - Serbian Dinar Strengthens 12% Against the $ Since January

For today's Major Market Move we feature the Serbian Dinar which is now 12% stronger vs. the US $ since the end of January.



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The move is not surprising considering that the Serbian Central Bank's 2 week lending rate is hovering around 12%.

Serbia’s central bank may hold Europe’s highest benchmark interest rate as it waits to see the effect of three increases this year and a stronger dinar on inflation, a Bloomberg survey showed.

The Belgrade-based Narodna Banka Srbije will leave its two- week repurchase rate unchanged at 12.5 percent when it meets on May 12, according to 10 of 21 economists. Seven see the bank raising the rate by a quarter-point and three expect an increase to 13 percent. One predicts a cut to 12.25 percent.

A 12% rate of return in a currency that is in a trend of strengthening against the dollar has to look pretty attractive to a US based investor right now.