Financial news

Foreign exchange market review. 27 September, 2007

At Ukrainian interbank foreign exchange market stabilization of situation is being continued after sharp increase of US dollar at bids on Thursday. Having opened at the level UAH 5,035/5,055 /$1, during a day, rate of American currency decreased and by the end of the session constituted 5,005/5,015, against 5,005/5,055 at bids on Wednesday.

Majority of bargains was concluded today by market participants at the range 5,03/5,04, in comparison with from 5,045/5,055 per $1 a day before.

NBU did not participate in bids.

Before reporting date at DEPO-market is observed cost growth of short-termed credits.

In spite of considerable balances at the accounts of commercial banks in NBU, rates on interbank credits not just decrease but also show growth.

Trade range on hryvna «overnight» remains stable at the level 0,5/1,5%. Average weighted rate «overnight» by 17:00 КТ constituted 1,1%, having no changes in comparison with the results of bids on Wednesday. Volume of concluded bargains by this time constituted just UAH 0,688 bln. , at UAH 0,864 bln. on Wednesday.

Cost of «weekly» resources grew almost two times, rates movement was marked at the range 4,0/7,0%, at 2,0/4,0% a day before. Average price on concluded bargains grew by 5,8%, from 3,1% in accordance with results of bids of previous day. Volume of bids constituted about 130 mln., at UAH 137 mln, fixed a day before.

Credits cost for the term «from 22 to 31 day» regardless the growth of short-term resources decreased today. Rates fluctuation was at the range 3,3/5,0%, against 5,8/6,5% at previous bids.

At international foreign exchange market opening of bids in Europe was marked by new maximum for pair euro/dollar at the level 1,4166. Analysts forecasted that in spite of pair overpurchase, ascending movement will be continued minimum to the publication of data on unemployment in the USA.

Then one can observe euro weakening against US dollar. It is connected with data on money supply growth M3 in Eurozone, which was lowered in comparison with previous month from 11,6% by 11,7%. Besides additional pressure on euro can be caused by messages that a big German bank used service of European Central Bank on financing at the amount EUR 5,5 bln.

As it was awaited in the second half of European session euro "crawled" up. Next growth was caused by the spread rumors about fall of new houses sales in the USA on 10%, that is much lower than economists' forecasts, in the amount of 4,6%. As a result of American currency sale, euro managed to break an optional barrier at breakthrough 1,4170 and come to the next obstacle in the field 1,4190/00, having denoted maximum at 1,4189.

Economical statistics from the USA in the form of the report on gross domestic product in general corresponded to the market expectations whereas data on applications to get unemployment benefits suddenly appeared to be more strong (298,000), then in average was expected by economists (311,000). Having used inability of euro to break oppression beside 1,4190/00 and supported by statistics from the USA, US dollar moved back from maximum till the level 1,3465/75.

Publication of data about new houses sales in the USA showed a decrease on 8,3%, that appeared to be a little better than expectations which lead euro/dollar to new maximums. As a result the pair decreased by the mark 1,4144 and at this moment have been corrected and traded about 1,4150/55.

The sales are at 1,4190/00 and further 1,4230, whereas break above will open the way in direction of synthetic maximum of 1992. The purchases are located 1,4125/20 and 1,4110/00.

Comments of Svitlana KRAMAROVA, Head of Treasury of PRAVEX-BANK.