Financial news

The US dollar exchange rate decreases against the hryvnia at the Ukrainian inter-bank foreign exchange market

International foreign exchange market. Today, during the European session, economic news came from Germany, the country which possesses the strongest economy in the Eurozone — in April of current year production decreased by 0.8% in comparison with March. While, analysts expected 0.2% growth. As it became known a bit later, the Central Bank of Germany changed inflation prognosis in the country for the current year towards increase and also depicted in its prognosis German economy slowdown.

Data on the number of persons employed in non agricultural sphere were published today in the USA. Their number decreased by 49,000 persons. This index proved to be better than expected prognosis (according to prognosis: — 58,000). But unemployment level increased sharply: in May it amounted to 5.5% with 5.0% in April. This provoked a great drop in the US currency exchange rate in world environment.

It is most probably that at the beginning of next week market participants will begin to leave short positions on the US dollar and the dollar will be able to regain lost positions.

Technical levels on main currency pairs as of 17:37 KT:

At the Ukrainian inter-bank foreign exchange market, the National Bank nonintervention in the course of trading from the beginning of week with insignificant offer dominating resulted in the next US dollar decrease against the hryvnia by the end of the week. The hryvnia after long fluctuation at today's trading within the limits of 4.74/4.75 per $1 has gradually strengthened and reached the level of 4.725/4.740 per $1. Significant portion of deals were concluded today by market participants within the limits of 4.74/4.75 against 4.755/4.77 on the previous day.

During today's bids UAH approached 4,70/$1, lower of which the NBU doesn't decrease USD rate after its official rate change at the end of May after three years break and renewed currency buy-out for the first time since September 2007. That is why, while keeping market tendency to UAH strengthening, the National Bank can resort to interventions already on Monday. Rate of interventions performance significantly differs from that one with which Central Bank bought out currency for the last time — 4,82/$1, as representatives of the NBU Supervisory Board earlier (this week) said that they will take all possible measures for market and official USD rate approaching.

At DEPO-market, rates on inter-bank hryvnia credits after decrease at the opening slightly changed towards reversed direction, but still they were lower than yesterday's level.

Today "Overnight" in UAH started from 5,0/11,0%, and by midday became narrower to 6,0/9,0%, with 5,0/14,0% at bids on Thursday. Average weighted price on actually concluded bargains at 17:00 КТ decreased to 7,6%, from 9,8% in accordance with results of the previous day at 17:00 КТ it slightly increased and constituted UAH 2,69 b, with 2,24 b on Thursday. On Thursday by the end of the day volume of registered bargains constituted 3,12 b.

Rates on credits for the term "from 2 to 7 days" decreased again — to 9,5/11,4%, in comparison with 10,0/16,5% a day before. Average weighted price on actually performed bargains decreased by 10,3%, from 12,9% yesterday. Volumes of concluded bargains decreased to 82 m, from 254 m on a previous day.

Rates on credits for the term "from 22 to 31 days" are today within 7,0/16,0%, with 16,0/20,0% at bids of the previous day.

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

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