Financial news

Dollar is still in demand. Foreign exchange market review. 4 October, 2007

At Ukrainian interbank foreign exchange market today US dollar is still in big demand that helps it to keep high positions against hryvna. Bid start today was fixed from the mark 5,040/5,055, from where American currency was corrected to the field 5,045/5,050. But the decrease lasted for a short time and soon the quotations started to creep up and reached the mark 5,053/5,058, and by the end of the session the rate increased more and made up 5,053/5,065.

Majority of bargains was concluded today by market participants in the range 5,048/5,053, while 5,047/5,055 per $1 on previous bid. NBU did not participate in the bid.

At DEPO-market there is no change.

Hryvna "overnignt" fell down below 1% and is traded in the range 0,3/0,8%. Average weighted "overnight" rate by 16:00 КТ constituted 0,8%, keeping unchangeable since yesterday. Concluded bargains bulk by this very time made up just UAH 510 mln., while 656 mln. at bid on Wednesday.

"Weekly" resources cost today is in the range 1,5/3,4%, having significantly added in the cost in comparison with yesterday. Average cost on the concluded bargains is fluctuating in the range 2,2/3,0%, against yesterday 1,6%. Bid volume increased approximately 1,5 times by 93 mln.

Cost of the credits for the term "from 22 up to 31 day" is in a wide "corridor" between 2,5/7,1%, so that average cost by 16:00 КТ looks about 3,3%, against Wednesday range 4/5% and average cost 4,4%.

"Overnight" on US dollar descended by 5,5/6,5%, on euro constitutes 4/5%.

At international foreign exchange market at Asian session euro and pound sterling weakened in the pair with US dollar after an article in British newspaper «Daily Telegraph» was published saying that quasi Bank of England is under the pressure and will decrease the rates in the course of today sitting. But this article has not been supported by any statement of official representatives of the Bank of England. Pound/dollar fixed the minimum of the day at the level 2,0275 after the session maximums in the field 2,0332. Euro/dollar meanwhile, rested in the range 1,4080/1,4100.

Despite weakening of positions both currencies started to "gain the weight" on the eve of Central banks sittings on the rates. The decision of the Bank of England to keep the key position unchangeable at the level 5,75% favorably effected British currency which grew up by 2,0366 from 2,0314 before the decision publication. Later pound set the maximum in pair with US dollar at the level 2,0386.

European currency perceived the decision about the rate keeping at the level 4% quietly and continued the movement in the range 1,4100/1,4115, because market participants showed great interest to the press-conference of the head of ECB Mr. Jean-Claude Trishe. He said that risks of Eurozone economical growth slowdown are kept against the background of uncertainty at markets. This became the reason for euro sale which decreased against US dollar by 1,4066. Further decrease was restrained by purchases at the approach to 1,4060/50.

So, euro for the fourth day in succession demonstrates a decrease against American currency and market is waiting on Friday for data about the number of work places in the USA, which cut last month initiated big fall of US dollar.

By the moment this review was written euro/dollar was traded beside 1,4095/4100, pound/dollar — beside 2,0375/2,0385.

Comments of KRAMAROVA S. N. — Head of Treasury of PRAVEX-BANK