Financial news

Foreign exchange market review 23 August, 2007

At Ukrainian interbank foreign exchange market on the eve of long week-end dollar rate decreased to hryvna after three-day rally and as a result dollar reached the mark 5,03/$1.

Today bid were opened at the mark 5,01/5,04, but, as new participants came out to the market, trade range narrowed first by 5,013/5,030, and then at all by 5,015/5,025. By the middle of bid the quotations were set at the mark 5,017/5,022, and then step by step were decreasing and by session closing made up by 5,010/5,016 in comparison with 5,022/5,030 a day before.

Main bulk of bargains was concluded today in the range 5,017/5,022, while 5,01/5,02 per $1 on previous day. NBU did not participate in bid.

DEPOT-market today bid are observed by growth of rates for credits in hryvna, by the term "from 2 to 7 days", while relative stability of "overnight" cost and some decrease of the price for credits "from 22 to 31 days".

Hryvna "overnight" cost still fluctuates in the range 0,5/1,5% annuals, but by the evening the range is narrowed by 0,5/1,0%. Average cost of the concluded bargains by 15:00 КТ makes up  1,1%, while 0,9% annuals according to results of bid on Wednesday. The bulk of concluded bargains by this very time made up UAH 491 mln. against UAH 1201 mln. according to bid results on Wednesday.

"Weekly" resources price today made up from 2,0 by 5,0%, while 2,0/3,5% on previous day. Average cost of issued credits increased more and made up 3,0%, against 1,8% on Wednesday. Bid bulk made up by 15:00 КТ 83 mln. while 193 mln. on Wednesday.

Bargains for the term "from 22 to 31 day" were concluded by market participants in the range 4,8/5,5%, that is a little lower than yesterday range 6,0/7,0%.

At international market at Asian and European bid on Thursday the yen is sold against euro, pound and American dollar. Dealers note that the ascending movement in pairs with yen takes place as a consequence of some carry trade renewal, provoked by rise at stock markets and readiness of participants to invest into risk assets and also due to closing of current short positions. Euro and pound purchase against yen provoked the growth of these currencies against US dollar which is decreased due to inability to overcome key levels on 1,3360 and 1,9650 correspondingly and to develop further ascending movement. Stimulus for euro and pound growth against US dollar was promoted by comments of Fitch rating agency which confirmed sovereign credit rating of German banks, having noted that in German banking sector signs of system risk are absent. As a result euro/dollar confidently came close to the level 1,3600, having reached maximum at 1,3588. Unsuccessful attempts to overcome sales located from this level until 1,3600, provoked the pair downfall by 1,3549. Now the pair is consolidated about 1,3553/56. In its turn, the pair pound/dollar broke an option barrier in the field of the figure 2,0000 and came close to the level 2,0100, having reached the mark 2,0092. Sales, located at 2,0085/00 threw the pair down. At this moment  the pair is traded about 2,0035/45. Experts at the market ascertain that euro and pound growth is temporary.

Dollar/yen today is fluctuating in the range of 115,33/117,13; euro/yen — 156,26/159,10.

Cash market of Thursday was characterized by confirmation of US dollar rate growth in central regions.

In Kyiv dollar rate grew up by 5,018/5,020, against Wednesday 5,017/5,019. The trade with cash dollar in southeastern regions was preformed at positions 5,018/5,022; in northeastern regions foreign currency was traded 5,019/5,021. In the west American currency was at the week positions 5,015/5,019.

Cash euro market was opened over Friday, but had preconditions for decrease. In the capital euro rate increased by the level of 6,80/6,82, in comparison with Wednesday 6,78/6,79. In the west of the country the rate of common European currency was traded 6,775/6,795. In the east cash euro rate was corrected in the limits of 6,81/6,83.