Financial news

Euro broke new record maximum against dollar. Foreign exchange market review. 28 September, 2007

At Ukrainian interbank foreign exchange market without special changes. Having opened by quotations 5,025/5,050 per $1, market started actually immediately descending as a result of which US dollar lowered by 5,010/5,025 by the end of session. Bids were quieter without sharp turn strictly in direction of American currency weakening.

Majority of bargains was concluded today by market participants at the range 5,020/5,03, at 5,03/5,04 per $1 a day before.

NBU did not participate in bids.

At DEPO-market today took place traditional increase of rates on interbank credits connected with limited offer during transition period.

Trade range on hryvnas «overnight» shifted up by 2,0/7,0%, at 0,5/1,5% a day before. Average weighted rate «overnight» by 16:00 КТ constituted 3,5%, in comparison with 1,2% as results of bids on Thursday. Volume of concluded bargains by this time constituted just UAH 0,547 bln., at UAH 1,151 bln. on Thursday.

Cost of «weekly» resources, however, decreased. Rates movement was marked at the range 3,4/6,0%, at 4,0/7,0% a day before. Average price on concluded bargains decreased by 4,1%, from 5,9% in accordance with results of previous day. Volume of bids constituted about 79 mln., that approximately two times less than yesterday index.

Together with it, on the background of credits cost growth for the term «from 22 to 31 days» by 7,0/10,0%, from 3,3/5,0% a day before; bids volume grew by 184 mln., from UAH 37,5 mln. Average price grew by 8,3%, с 4,9% during previous bids.

At international foreign exchange market last day of the week before publishing of important data from the USA, Euro broke new maximum against US dollar at the level 1,4195, but further movement was restrained by orders on sale protecting option barriers at the level 1,4200. Immediately after data publication, rate of US dollar practically was not changed against Euro and kept at the area of reached maximums.

Data from the USA were not well-defined: personal incomes in August grew just on 0,3%, against 0,4%. But personal charges increased: +0,6%, against forecast +0,4%. Base price index of consumption constituted just +0,1%, at forecast 0,2%, as a result annual index decreased by +1,8% — minimal significance from February, 2004. It means that inflation in the USA is keeping lower than target level of FRS at the amount 2%. Pause after data publication was not long, and «bears» on dollar «started actions», as a result euro /dollar overcome barrier at the level 1,4200, having reached maximum 1,4209. Publication of business climate index in New-York which constituted in September just 437,6 points, at 445,0 previous month gave impulse for descending movement of US dollar. At present euro is traded not far from reached maximums about 1,4220.

During a day pair fluctuated at the range 1,4144/1,4224.

Comments of KRAMAROVA S.N., head of Treasury of PRAVEX-BANK.