Financial news

US dollar is being strengthened. Foreign exchange market review. 22 October, 2007

At Ukrainian interbank currency market US dollar kept being strengthened against hryvna after during two previous sessions it demonstrated its weakness, as a result it finally lost 2-3 kop.

Today movement of US dollar quotations was marked at the range 5,030/5,052 per $1, and is strictly observed ascending dynamics since the beginning of the session by its end.

Majority of bids was at the range 5,040/5,045, at 5,030/5,038 per $1 a day before. National Bank did not participate in bids.

At DEPO-market there is observed comparative stability of "overnight" credit costs, on the background of insignificant of reduction of other short-term credits.

Today quotations on hryvnas «overnight» is at the range 0,25/1,90, but the main bids as earlier are at the range 0,4/0,7%. Average weighted rate «overnight» by 17:00 КТ remains unchangeable, at the level 0,7%. Concluded bargains volume constitutes UAH 703 mln., reduced almost in 4 times from 2,72 bln. on Friday.

Cost of «weekly» resources reduced — today trade range on these credits constitutes 1,0/2,8%, that much larger of the trade range on Friday on 1,75/2,25%. Average price, however, decreased by 1,5%, from 2,0% a day before and constituted 109 mln. against 139 mln. a day before.

Price on issued credits for the term «from 22 to 31 day» fluctuated today within 4,0/5,0%, in comparison with 3,6/8,0%, fixed on bids on Friday.

At international foreign exchange market Japanese yen was strengthened against 16 most actively traded currencies and reached three-week maximum against Euro after declaration of Big seven on 19 October that downfall at the housing market in the USA prevents world growth. All big stock markets in Asia fell as investors left carry trade. In pair with Euro, US dollar broke new record minimum at the level 1,4348. But sales that were higher than 1,4350 were stable, and some speculative accounts started to close long positions, as a result pair descended to the bids 113,80. Further demand on behalf of importers supported pair at the area 113,50, but soon American vendors tested demand about 113,40.

Pound growth was stopped by offer in the area 2,0550. Besides, sales pound/yen pressed the pound and pair returned to the level 2,0475, where buyers were American and Britain banks which helped to rise to pound/dollar by 2,0500.

US dollar opened European session under the pressure and it was traded for some time at the range 1,4300/1,4335. Crosses with yen, namely Euro and pound turned out to be under big pressure of vendors on the background of general closure of speculative carry trade bargains, that also reflected on their dynamics with American currency. On the background of it Euro/dollar stayed much aids and absorbed a lot of feet before it was stopped by sales in the area 1,4135. Against pound US dollar grew to the mark 2,0268 after reaching of minimum on 2,0537, before its ascending movement was held up.

At the moment Euro/dollar is about 1,4145/50. Purchases were at 1,4135, further on 1,4115/00. Purchases are on 1,4200.

Pound is traded by US dollar about 2,0280.

In pair with yen US dollar is traded at the level of 114 yens.

Euro/yen constitute 161,30, being renewed a little bit from the minimum in 160,47 yens.

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