Financial news

Review of foreign exchange market. 3 September, 2007

At the Ukrainian interbank foreign exchange market bids today were not very active due to day-off in the USA concerning celebration of Labor Day. Main part of the bargains concluded on today bids comprises Russian ruble and Euro. Bids of Russian ruble were opened at the level 0,1955/0,1963, and shortly quotation grew to 0,1965/0,1971, but to the end of the session lowered to 0,1961/0,1963. At today bids Euro rate lowered a little bit to the end of the session in comparison with rate of opening. To the end of the session quotation constituted 6,8296/6,8568, against opening level in 6,8553/6,8816. Decrease took place at the expense of Euro weakening against US dollar at the international market and at the expense of US dollar rate lowering to hryvna. Purchase/sale of US dollar today was accomplished with delivery date for the next business day and had limited bids volume. During a day US rate lowered to 5,02/5,03, from 5,025/5,045 at the beginning of bids.

At DEPOT market today interest rate downfall on interbank loans after their growth on previous business day is observed caused by reduction of offer on previous date.

Overnight cost lowered at the second part of the day to 0,4/1,0%, from 1,0/2,5 in the morning and 2,0/6,5% on previous day. Average price on concluded bargains to 16:00 КТ constituted 1,2%, against 3,3% on previous day. Volume of concluded bargains to 16:00 КТ constituted UAH 276 mln. in total against 1,367 mln. according to bids on Friday.

Cost of «weekly» resources also lowers and constitutes today 1,0/4,0%, against Friday 4,0/5,5%. Average cost of issued credits constitutes 2,0%, at 5,1% in accordance with the results of the previous day. Bids volume constituted by 16:00 КТ 184 mln., at 56 mln. the day before.

Credits cost for the period «from 22 to 31 days» lowered today to 2,9/6,5% in comparison with 5,5/7,5% on previous day.

At the international foreign exchange market the first part of Asian session for US dollar was marked by some weakening though rates dynamics was limited and did not cross the limits of narrow ranges. It is caused by day off in the USA due to festival of Labor Day as a result main markets are closed and by absence of fundamental data from other countries. Dollar/yen started trade session unsuccessfully having lowered from level 115,95, where it traded in finishing of New-York session on Friday, by 115,67. Euro/dollar also remained within limits between 1,3625 and 1,3640, though dealers note interest to the pair in both directions.

At the beginning of the trade session in Europe pairs dollar/yen and Euro/dollar and both pairs overcame maximums of Asian session. Dollar/yen was renewed in the field higher 116,00 after sales in Tokyo, where it lost 30 points. Euro/dollar, in its turn, was traded about 1,3650. Demand on pair is explained by dealers purchases from the side of Russian accounts, in the course of which pair started to test purchase orders in the field 1,3650/60 and reached maximum on 1,3655. By the moment of review writing impulses of both pairs weakened a little bit, and bids returned into Asian trade range.

This week market participants' attention will be focused on the decision of Central Banks of Canada and England, European Central Bank on rates, reports of labor Department on occupation on payment sheets.

By 16:55 КТ Euro/dollar is traded about 1,3625/35. Sales of pair are situated on 1,3650/60, further on 1,3680/85. Purchases on 1,3630/20, further on 1,3605/00. Analysts say that inability of pair to overcome level 1,3735 can provoke its downfall by 1,3550.

During a day Euro/dollar was traded in the range 1,3621/1,3655, Dollar/yen — 115,63/116,13.

Monday cash market is not marked by some US dollar movements.

In Kyiv US dollar rate was narrowed in margin to 5,029/5,031, against Friday 5,028/5,033. Trade with cash dollar in south-east regions was carried on positions 5,027/5,032; in north-east regions currency was traded on 5,03/5,034. In the West American currency remained at the level 5,02/5,025.

Cash Euro market had preconditions to lowering. In the capital Euro lowered to 6,86/6,87, against previous business day 6,86/6,875. In the west of the country common European currency rate was traded 6,83/6,85. In the East cash Euro rate was corrected within 6,87/6,89.