Financial news

Inter-bank credits rates increase at DEPO-market

International foreign exchange market. On Wednesday USD increased against world main currencies basket. During Asian trade session it was decreasing, but after European players coming to the market there started strong USD increase.

At the market there were suspicions about inflation in Europe after release of consumer prices index of German regions. This data release strengthened expectations that European Central Bank will keep to rigid policy on interest rate level not to allow inflation increase. Oil prices started to decrease after American dollar strengthening. One barrel of oil cost USD 127 today.

Quantity of orders for durable goods in the USA considerably decreased. Analysts expected decrease on 1%, and real value constituted -0,5%. Such news supported ascending movement of American currency.

Sales in retail network of the USA per week (since 18 till 24 of May) increased in annual calculation 1,7%.

American economics slowly started to recover and at the moment looks stronger than European one.

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

 At Ukrainian inter-bank foreign exchange market as it was expected, USD weakened positions after that fact that the NBU took decision not to buy back dollars at bids on Tuesday. Due to it, doubts of market participants that occurred today as for currency interventions renewal by the National Bank, weakened positions of currency sellers that had to decrease sales price. During session USD rate decreased to 4,725/4,745, from 4,74/4,80 while opening. The correctness of decision taking as for sale rate decrease was confirmed by bids closure when the NBU informed market that it took decision not to enter the market due to its equilibration. The National Bank performs currency interventions only in case of considerable disbalance at the market. Taking into account the circumstances, American currency positions against UAH can be weakened at bids on Thursday.

Majority of bargains was concluded today by market participants within 4,74/4,76, with 4,760/4,795 per $1 at bids on Tuesday.

At DEPO-market situation with UAH liquidity today was aggravated in comparison with yesterday's day that caused new rates increase on inter-bank credits.

"Overnight" in UAH during a day was fluctuated within 17,0/28,0%, with 14,0/23,0% on Tuesday. Average weighted price on concluded bargains at 17:00 КТ increased by 21,7%, with 19,9% in accordance with results of previous session. Volume of bargains at the same time decreased by UAH 2,14 b, from 2,31 b a day before. By the end of the day on Tuesday volume of registered bargains constituted 3,27 b.

Rates on credits for the term "from 2 to 7 days" constitute today 20,0/28,0%, in comparison with 17,6/25,0% a day before. And average weighted price on actually performed bargains increased up to 23,7%, from 19,8% on Tuesday. Volumes of concluded bargains increased to 148 m, from 111 m during previous session.

Rates on credits for the term "from 22 to 31 days" are at the level 18,6/35,0%, against 31,5/35,5% during previous bids.

"Overnight" in USD fluctuates today within 4,0/8,0% p.a.

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

[You can subscribe for Banks news]