Financial news

Inactive bids at Ukrainian interbank foreign exchange market. Foreign exchange market review. 8 October, 2007

At Ukrainian interbank foreign exchange market today there are observed inactive bids in connection with that fact that purchase /sale of American currency which constitutes the biggest part of domestic market, is limited because of day-off in the USA due to celebration of Columb Day. Rate of US dollar to hryvna today fluctuated at the range 5,03/5,06, at 5,039/5,060 previous day.

Main part of today bids was related to Russian ruble and euro. Bids on rubles were opened by quotations about 0,2018/0,2025, and finished at the level 0,2015/0,2025. During a day Euro became cheaper by 7,09/7,12, from 7,115/1425 immediately after opening. Decrease partly occurred due to weakening of European currency against US dollar at the international market.

At bids on Tuesday, sharp deviation from Friday bids course is possible that is connected with big quantity of applications after long days-off.

At DEPO-market rates on interbank credits are today at the minimal marks.

Hryvna «overnight» is traded within 0,2/0,75%. Average weighted rate «overnight» by 16:00 КТ constituted 0,6%, that corresponds to the level of closure previous day. Volume of concluded bargains by this time constituted UAH 554 mln., at 879 mln. in accordance with results on Friday at 0,75/4,4% a day before. Average price on conducted bargains constitutes about 1,0%, that is lower of Friday index on 1,8%. Bids volume grew by UAH 177 mln., from 68 mln. on Friday.

On credits for the term «from 22 to 31 day» price was changed at the range 3,0/4,0%, in the first half of a day single bargains were fixed with the price, that increase indicated range. Average price on conducted operations constitutes 3,9%, that is higher of the same meaning for the previous day on 0,4%.

At international foreign exchange market at Asian session US dollar is traded in narrow range being supported by strengthening of crosses with yen under influence of increased appetite to the risk, in spite of quiet, holiday session. Dollar/yen renewed increasing trend and grew to 117,00, having stopped at maximum 117,19. At this time cross-rate of euro/yen growing entered purchase area at range 165,80, after this weakened to 165,42 under influence of American banks sales. Rest of the session was quieter because of holiday in Japan. Euro/dollar, at that time, were traded at narrow range 1,4132/52.

At the beginning of trade session in Europe, US dollar shows strengthening indications. In pair with euro it grew to maximum 1,4106, and dealers inform about feet below the level 1,4100 by 1,4080. Then demand on pair occurs at the range 1,4070/60. Orders on sale are still at the area 1,4150/60. At this time dollar/yen managed to overcome Asian session maximums at the level 117,18, performed feet at its break, however offer at the range 117,50 restrains growth.

Some analysts suppose that pair euro/dollar will be traded at the range 1,4155-1,4030, but as consequence it will overcome upper boarder and will start ascending with the aim on 1,42 and maximum at the level 1,4285. What about yen, there are assumptions that on the background of interest renewal to carry trade, Japanese currency will remain under pressure with the aim in pair on the area 118,00.

During a day euro/dollar was traded at the range 1,4070/1,4153 and at the moment of review writing fluctuates about 1,4070/80.

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