Financial news

At Ukrainian interbank foreign exchange market the same moods are kept. Foreign exchange market review. 17 October 2007

At Ukrainian interbank foreign exchange market the same moods are kept, it resulted in an insignificant growth of US dollar quotations against hryvna. Trade range narrowed by 1 kop. and bids took place in the range 5,048/5,058, while 5,040/5,055 a day before. Narrow range is an evidence of market balance and a sign of determination of fair current foreign currency price.

Major part of the concluded bargains was performed today in the range of 5,050/5,055, while 5,048/5,052 per $1 a day before.

NBU did not participate in bids.

The situation at DEPO-market stays without changes despite a cut of balances at correspondent accounts of commercial banks at NBU.

Fluctuation of quotations on hryvna "overnight" is noted in the range 0,25/2,00, and major part of bargains is concluded in the same range 0,30/0,60%. Average weighted rate "overnight" by 17:00 КТ makes up 0,6%. Volume of the concluded bargains made up UAH 1 354 mln. while UAH 1 495 mln. a day before.

The cost of "weekly" resources today increased a little bit and was in the range 1,0/2,2%, while 0,9/1,75% on Tuesday. In this connection average cost increased and stayed in the range 1,4-2,0%, while 1,3% a day before. Volume of bids shortened 5 times by 61 mln. from 315 mln. a day before.

The price on issued credits for the term "from 22 up to 31 day" fluctuated today in the range 5/6%.

Today at international foreign exchange market after strengthening at bids on Tuesday American currency lost its achievements against euro. US dollar appeared to be under pressure due to release of economic statistics in the USA. While inflation data in general coincided with expectations (consumer prices index in the USA grew up in September on 0,3% while growth  forecast on 0,2%, basic index grew on 0,2% and coincided with forecasts), statistics of housing market looked quite negative and appeared to be significantly worse than expectations. The number of new constructions in August reached minimum level since March 1993 and felt down on 10,2%, by 1,191 mln., while economists in average forecasted a decrease just by 1,300 mln. Meanwhile, the number of permissions for construction reduced on 7,3%, by 1,226 mln., having reached minimum level since July 1993.

Euro/dollar continued an ascending movement and, having overcame sales in the field of 1,4190/00, reached the mark 1,4230, where an ascending movement was stopped by sales. Despite this euro keeps on to be in demand due to improvement of carry trade players' spirit and at this time is keeping beside 1,4210. Dealers remind that sales stay in the field of 1,4225/30 and 1,4240/50.

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