Financial news

US dollar supply and demand is still balanced at Ukrainian interbank foreign exchange market

Today, at FOREX international foreign exchange market the US dollar increased against euro, pound sterling and franc all day long.

At 9 a.m., retail sale level in Germany was published. Sales in February increased by 1,6% in comparison with January. Analysts predicted sales growth. Euro decreased by 70 points. In 3 hours Europe unemployment data for February were published, they constituted 7.1%. The US dollar kept increasing.

The US stock exchanges opened with growth, having reacted in this way to Lehman Brothers statement about US $3 b attraction to dispel doubts about its financial instability. ISM index in the US industrial area rose up to 48,6 point. This index is higher than the one registered in previous month. So, this means that business vein in industrial sphere begins little by little to go forward at a steady gait.

Technical analysis of time schedules shows that the US dollar will continue to grow in short-term perspective.

Current technical levels on main currency pairs:

At Ukrainian interbank foreign exchange market the US supply and demand is still balanced with the exchange rate of this balance being still stable, fluctuating within the limits of 1 copeck on the both sides of  5,00/$1 level. Trading was opened today at 4,995/5,005 level, but soon afterwards the US dollar turned somewhat weak, having lost 0,5 copeck. Trading was closed with differently oriented quotations at 4,985/5,010 per $1.

The majority of deals was concluded today within the limits of 4,995/4,998, with 4,996/5,000 per $1 a day earlier.

At DEPO-market interbank credits rates rollback can be observed as it is traditionally the case after reporting date closure.

Thus "overnight" credit rates decreased by the end of the day to 11/16%, with 15/25 in the morning and 25/35% at the closure on Monday. Weighted average price of concluded deals by 17:00 KT decreased to 16,9% from 19,2% according to session trading results on the previous day. Concluded deals volume by the same time grew and constituted UAH 3,59 b, with UAH 2,63 b a day earlier.

Credits for a period "from 2 to 7 days" are getting cheaper today. Quotations move is observed today in a wider range than a day earlier — 15,0/21,4% and 15,5/20,7% respectively. Nevertheless, weighted average price decreased to the mark of 17,2% from 18,7% on Monday. While concluded deals volume rose sharply up to 460 m from 95 m yesterday.

Credit rates for a period "from 22 to 31 days" fluctuate today within the range of 11,0/16,6%, with 17,0/18,0% a day earlier.

Suppression of a more sharp dropping of rates is caused by reduce during previous day of commercial banks balances at the NBU correspondent account by UAH 1 b.

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

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