Danish Sept forex reserves fall to 513.5 bln DKK
COPENHAGEN, Oct 2 (Reuters) - Denmark's foreign exchange reserves, a monetary policy tool, fell by 0.9 billion crowns in September to 513.5 billion Danish crowns ($88.88 billion), the central bank said on Tuesday.
The Nationalbank said it intervened in the foreign exchange market in September, buying a net 0.6 billion crowns for other currencies to steady the crown in line with its mandate.
Changes in the forex reserves are a pointer to interest rate setting if they stem from central bank intervention in the market because such action by the bank tends to precede changes in interest rates.
European Union member but euro zone outsider Denmark's policy of holding the crown steady against the euro means that the central bank shifts interest rates for the sole purpose of keeping the crown around its central parity of 7.46038 per euro . ($1 = 5.7773 Danish crowns)
(Reporting by Copenhagen newsroom)
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Keywords: DENMARK RESERVES/