Financial news

US dollar increased against European currencies at international foreign exchange market

International foreign exchange market. Today USD was growing against European currencies-competitors.

Axel Weber, Member of European Central Bank Board informed today that "ECB has no possibility to decrease interest rate as there is great wish to increase discount interest rate" to fight with inflation, however German and French publication of weak statistics decreases probability of such increase.

Houses prices in the USA are decreased all over the country. In March index decreased 2,2% in monthly calculation and 14,4% in annual. Consumer confidence index in the USA decreased in May, 2008 by 57,2 points (from reviewed April significance to majority at the level of 62,8 points).

In short-term perspective US dollar will keep its growth against Euro, Swiss franc and British pound of sterling as US economics looks more positive than European one.

Technical levels on the main currency pairs at 17:58 КТ:

At Ukrainian inter-bank foreign exchange market US dollar approached 4,80/$1 and strengthened its position near this level. American currency growth is caused by interventions performed by NBU that help sellers to keep price. Due to this factor dollar fluctuated within 4,74/4,81 during the day, and the main part of bargains was concluded within 4,760/4,795 per $1.

However market expectations were not met, the National Bank considered market situation to be balanced and refrained from repurchase of currency in excess from sellers. It can cause pressure on USD at bids on Wednesday and its rate can be decreased against UAH.

At DEPO-market balances decrease at correspondent accounts of commercial banks and no inflow of UAH liquidity after the National Bank's restraining from currency interventions cause favourable influence on growth of interest rates on inter-bank credits.

"Overnight" in UAH increased during a day from 14,0/19,0% to 18,0/23,0% by the closure of bids in comparison with 10,0/20,0% on Monday. Average weighted price on concluded bargains at 17:00 КТ constituted today 19,1%, with 16,2% in accordance with results of Monday's session. At the same time volume of bargains decreased to UAH 2,31 b from 2,71 b a day before. By the end of the day on Monday volume of registered bargains constituted 3,56 b.

Rates on credits for the term "from 2 to 7 days" are at the large range — 17,6/25,0%, with 19,0/27,0% a day before. And average weighted price on actually performed bargains decreased to 18,2%, from 21,6% on Monday. Volumes of concluded bargains increased up to 95 m, from 45 m during previous session.

Rates on credits for the term "from 22 to 31 days" are at the level 31,5/35,5%, with 15,0/25,0% during previous bids.

"Overnight" in USD became more expensive today up to 5,5/8,0%, from 3,5/5,5% on Monday.

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

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