Financial news

Foreign exchange market review 20 August 2007

Ukrainian interbank foreign exchange market today was offset after two-week interventions of the National Bank when it was buying back a surplus dollar offer at 5,00/$1.

Trade session today was opened by quotations at the level of 4,995/5,005 per $1, but soon the trade range narrowed by 4,9970/5,0010. But, as it appeared, the decrease was short-term and dollar rate started to grow as sales volumes decreased. By session completion the rate of dollar to hryvna made up 5,0050/5,0100, while 5,0010/5,0050 a day before.

The main volume of bargains was concluded today at the rate close to 5,0000/5,0030, while  5,00/$1 on previous day.

DEPOT-market today marked a slight growth of interbank credits cost for "overnight" that is connected with intermediate report date and necessity to pay some payments to budget and also by balances reduction at loro accounts of commercial banks in NBU as a result of purchase of two-weeks deposit certificates of the National Bank of Ukraine at the end of last week.

Hryvna "overnight" cost increased today by 0,5/1,5% from 0,4/1,0% a day before. Average price of the concluded bargains by 15:00 КТ increased by 1,0%, while 0,6% according to bid results on Friday. The concluded bargains volume by this time made up UAH 1066 mln. against UAH  1439 mln. according to the results of bid on Friday.

Bargains for the term "from 22 to 31 days" were concluded by market participants in the range of 4,2/9,0%, while 4,3/10,3% on previous day.

In international market after FRS decision last week to lower the rate temporarily on 0,5%, by 5,75%, dollar decreased with respect to the main world currencies and at bid on Monday was not far from the achieved minimums. Absence of significant economical data on Monday is the reason of the range bid which take place in lateral trend in the range of 1,3466/1,3508. At European session the pair under influence of purchases raised up by 1,3508, but interest of bid participants ran out quickly and meeting by the pair of sales at the approach to 1,3510 threw it off to 1,3485. Market participants note that until euro/dollar is below 1,3610, the descending trend remains in force. At this time the sales are situated at 1,3510, then at 1,3520/30, 1,3550/65 with feet higher and further within figure 1,3600. Purchases on euro/dollar are at 1,3460/70, then 1,3440 and within figure field 1,3400. By 17:07 КТ euro/dollar is traded about 1,3480.

Cash market of the first business day of the week has no meaningful change.

In Kyiv dollar rate remained at 5,018/5,02, against Friday 5,018/5,02. Cash dollar trade in southeastern regions was conducted at the positions 5,018/5,022; in northeastern regions foreign currency decreased by 5,015/5,018. In the west American currency was at the positions of 5,015/5,019.

Euro cash market was opened higher than Friday, but had preconditions for decrease. In the capital euro rate increased by the level of 6,77/6,785, in comparison with Friday 6,76/6,77. In the west of the country the rate of common European currency was traded 6,73/6,76. In the east cash euro rate was corrected in the range 6,77/6,79.