BELGRADE, June 1 (Reuters) - The Serbian central bank bought euros on the local interbank market on Thursday to soften the dinar's gains, which have been fueled by increased demand and lending, dealers said.
The central bank, which has bought 160 million euros ($180 million) so far this year, stepped in as the dinar traded at 122.20 to the euro, dealers said. After the intervention the dinar weakened to 122.5 per euro as of 1025 GMT.
On Wednesday, the central bank purchased 15 million euros to manage the exchange rate of the dinar, which it keeps in a managed float against the common currency. ($1 = 0.8905 euros) (Reporting by Aleksandar Vasovic; Editing by Hugh Lawson)