Financial news

US dollar increase at the international foreign exchange market

International foreign exchange market. During all this day the US dollar increase has been observed which was not even affected in a negative way by relatively bad statistical data from the USA. Unemployment applications number increased up to 372,000 forms. This index coincided with analysts' expectations. There are also good news from the USA — confirmation of preliminary estimate of the US GDP growth by 0.9% in the first quarter of the current year in comparison with 2007 analogical period. These news pushed the US dollar towards further growth against European currencies as the probability of recession beginning in the US decreased significantly.

Data on unemployment persons' number in Germany were published in the morning, the index increased by 4,000 persons in comparison with April and amounted to 3.31 million persons. Analysts expected that unemployment persons' number would decrease by 20,000 persons. After news publication euro went on falling.

Technical levels on main currency levels as of 17:54 KT:

At the Ukrainian inter-bank foreign exchange market, today's session was marked by the US dollar exchange rate sharp rise against the hryvnya which was caused by the statement by the NBU as regards its willingness to buy out currency offer excess. Probable intervention rate at which central regulator bought out the US dollars the last time was now increased to 4,84/$1 from 4,80.

Immediately after this message publication, UAH inter-bank quotations decreased to 4,78/4,84 from 4,70/4,73. It is to be noticed that during two previous sessions the US dollar exchange rate decreased approximately by 6 kopecks due to the National Bank's non intervention into trading course. Today's session was logically closed by the NBU regular intervention which was conducted at 4,84/$1 as declared before. But it is assumed that the NBU bought out only a portion of the currency offered for sale by the bidders.

The majority of deals were concluded today by competitors within the range of 4,74/4,80, with 4,74/4,76 per $1 at bids on Wednesday.

Further direction of inter-bank market movement will depend on measures being undertook by the National Bank which is highlighted by today's session results.

At the DEPO-market, rates on inter-bank credits in UAH decreased which was facilitated by statistical data on balances increase of commercial banks with the NBU as well as by UAH funds inflow obtained from currency selling within the process of currency interventions. But the recession was restrained by reporting date approaching.

"Overnight" credits in UAH dropped and are today within the limits of 13,0/23,0% p.a., with 14,0/28,0% at yesterday's bids.  Average weighted price on concluded transactions by 17:00 KT decreased by 17.8% from 21.0% according to previous session results. Transactions volume as of the same period grew to UAH 2.58 b, from 2.12 b a day earlier. By the end of the day on Wednesday, volume of registered transactions amounted to 3.25 b.

Rates on credits for a period "from 2 to 7 days" amount today to 18,0/25,6%, in comparison with 20,0/28,0% a day earlier. And weighted average price on actually realized deals decreased to 22,3%, from 24,3% on Wednesday. Volumes of actually concluded deals decreased significantly and amounted to 52,3 million, with 171,3 million during previous session.

Rates on credits for a period "from 22 to 31 days" are at 12,5/27,9%, with 18,6/35,0%  at previous bids.

US Dollar "overnight" still remains within the range of 4,0/8,0% p.a.

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

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