RIGA, April 6 (Reuters) - Latvia central bank said on Tuesday it bought a net 11 million euros last week, up from net balanced positions for the previous two weeks.
Traders said the lat currency was trading closer to its weaker end of its band against the euro due to end-month banks provisioning, while the central bank's intervention could be related to activities of the State Treasury.
On Tuesday, the lat was quoted at 0.7084/94 lats compared with a 0.7078 previous close on Monday, but was still off levels at which the central bank intervenes.
The central bank automatically accepts offers to buy lats in what it calls passive intervention when the euro hits 0.7098 lats, the top end of its 1 percent fluctuation band based on a central rate of 0.7028 lats.
Latvia took a 7.5 billion euro rescue package from the International Monetary Fund, the European Union and other donors at end-2008 to keep its currency stable.
Cntral bank interventions this year have been limited or even aimed at capping gains, easing speculation the government would have to devalue.
(Reporting by Aija Braslina, editing by Mike Peacock) Keywords: LATVIA CURRENCY/ (via Riga newsroom, +371 265 965 53) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Traders said the lat currency was trading closer to its weaker end of its band against the euro due to end-month banks provisioning, while the central bank's intervention could be related to activities of the State Treasury.
On Tuesday, the lat was quoted at 0.7084/94 lats compared with a 0.7078 previous close on Monday, but was still off levels at which the central bank intervenes.
The central bank automatically accepts offers to buy lats in what it calls passive intervention when the euro hits 0.7098 lats, the top end of its 1 percent fluctuation band based on a central rate of 0.7028 lats.
Latvia took a 7.5 billion euro rescue package from the International Monetary Fund, the European Union and other donors at end-2008 to keep its currency stable.
Cntral bank interventions this year have been limited or even aimed at capping gains, easing speculation the government would have to devalue.
(Reporting by Aija Braslina, editing by Mike Peacock) Keywords: LATVIA CURRENCY/ (via Riga newsroom, +371 265 965 53) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.