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At the international foreign exchange market descending trend of euro against the US dollar is being observed

International foreign exchange market. During this day, descending trend of euro against the US dollar is being observed. Negative data on Eurozone economy gave support to the dollar. Thus, British industrial production index for March published before the noon, showed decrease by 0,5% with projected decrease by 0,1%. The same index influenced also Great Briatin pound decrease which showed similar dynamics during the day. Next information flow also supported negative dynamics of euro — retail sale in Eurozone decreased in annual calculation by 1,6%. The third report which affected euro announced increased reserved of oil and oil products this week in the USA.

Thus, the exchange rate having begun the day from the mark of 1,55 by the beginning of business day dropped to USD/EUR 1,549 and by 17:00 KT amounted to 1,5385.

This day showed that the US dollar has resources to grow as was proved by technical indicators.

Technical levels on main currency pairs as of 19:03 KT:

At the Ukrainian inter-bank foreign exchange market, today after a short break the US dollar began once more to decrease against the hryvnya. With the beginning of trading, the number of buyers exceeded the number of sellers. Trading was opened at UAH 4,84 per USD 1. During the trading session the price was decreasing. Many transactions were conducted within the range of UAH/USD 4,80-4,82. But soon afterwards, large banks with considerable USD sails entered the market and the USD exchange rate decreased to UAH/USD 4,78-4,80. The majority of transactions were concluded today by market participants within the range of 4,7950/4,8250, with 4,82/4,84 per $1 at yesterday's bids. By the closing of the session the exchange rate decreased to UAH 4,7750 per USD 1.

At DEPO-market national currency offer was lower today than yesterday. In the morning banks attracted night resources with 9,5-12%. In the evening, rates decreased by 7/9%, with 10/15% on Tuesday. Average weighted price on concluded bargains at 17:00 КТ constituted 9,2%, at 10,4% on May 6, volume of bargains constituted UAH 2,358 b with 2,67 b on May 6.

Credit rates for the term "from 2 to 7 days" fluctuate at the level 9/14%, that is lower than yesterday's level with 10/16,0% p.a. Average weighted price on concluded bargains increased — up to 11,6%, at 11,2% in accordance with results of bids on Tuesday.

Rates on credits for the term "from 22 to 31 days" are today at the same level as yesterday — 13/18%.

Dollar "overnight", as yesterday is quoted by banks within 4,5/6,0%; euro "overnight" — 4,25/5,5, with 4/5,5% p.a. at bids, on May 6.

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

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