Financial news

US dollar keeps strengthening at international foreign exchange market

International foreign exchange market. Since the beginning of Asian session on Wednesday US dollar kept its strengthening. When Europeans came to the market rate of American currency started decreasing. In the morning in Great Britain data on quantity of approved issued mortgage credits were published. Their quantity decreased in February by the level of 73000, with forecasts of analysts 72000. However crediting volumes increased 7,446 b of pounds sterling. These data confirmed confident growth of mortgage market in England and in Europe and pushed to growth all European currencies.

At noon KT European price index of producers. Monthly growth constituted 0,6% and confirmed investors' expectations. European currencies made impulsive jerk upwards, and then again decreased by the level that was set before news publication.

Ameliorated interim data on employment level in the USA strengthened a little bit investors' confidence in US dollar as quantity of working places in private sector increased. Market is looking forward to news of Friday on employment level.

Current technical levels on the main currency pairs:

At Ukrainian interbank foreign exchange market US dollar slightly weakened its positions against hryvnia, having descended to the level 4,98/$1 for sale. Trade session was opened today by quotations at the level 4,985/5,00, but currency offer was so high that rate decreased by the level 4,98/4,99 per $1 practically immediately and within this range US dollar was traded during the whole day. Considerable currency offer can be connected with internal offers as well as with currency supplies to the country, as strongly decreased shares quotations of Ukrainian companies can be attractive for foreign investors.

Majority of bargains was concluded today by market participants within 4,98/4,99, at 4,995/4,998 per $1 on Tuesday.

At DEPO-market corrective decrease of rates on interbank credits after growth on the reporting date is strengthened today due to unexpected growth of balances on correspondent accounts in NBU on UAH 2,5 b. However it bears slightly late character as part of "working" money was given to banks in the morning under high interest.

Rates on "overnight" credits by the end of the day decreased by 8,0/14,0% from 16,0/20,0% in the morning and 11/25% on Tuesday. Average weighted price on these credits by 17:00 КТ decreased to 15,8% from 16,9% in accordance with bids of yesterday. Volume of concluded bargains by the same time constituted 2,26 b, with UAH 4,30 b a day before.

Credits for the term "from 2 to 7 days" decrease today in leaps and bounds. Thus, price of these resources changing within 9,0/20,0%, with 15,0/21,4% yesterday, finally allowed to get average rate at the amount 13,9%, with volume of concluded bargains UAH 457 m in comparison with 17,3% and UAH 478 m a day before.

Rates on credits for the term "from 22 to 31 days" fluctuate today about 20% p.a., with trade range on previous day about 11,0/16,6% p.a.

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

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