Financial news

At DEPO-market rates on interbank credits keep decreasing before the weekend.

International foreign exchange market. Exchange rates of the main currency pairs fluctuated before the noon within a narrow price corridor. With the opening of European trading session, the US dollar tried to increase a little against the comments by Jean-Claude Trichet, the Head of the ECB, on economic situation in the EU. Trichet stated that inflation in the Eurozone is still at a level which "leaves much to be desired". Answering a question about further increasing of ECB's discount rate, Trichet said that he had nothing to add on the topic.

Markets of shares in Europe were opened increasing due to next oil prices increase. Today prices on futures increased by the level $143,00 per barrel.

After Americans entering the market USD started decreasing against its competitors in spite of the fact that deficiency of US trade balance decreased by $59,79 bn, from $60,5 bn.

Sharp USD decrease was connected with the announcement of Genry Polson Minister of Finance of the USA about Fannie Mae и Freddie Mac mortgage institutions purchase by US Administration. Such expectations indirectly show big influence of mortgage crisis on American economics.

Technical levels on the main currency pairs at 17:37 КТ:

At Ukrainian interbank foreign exchange market interests of market participants on purchase and sale were practically equal today, and USD rate fluctuation was performed within 5 kopecks. US dollar that lost its positions after announcement of the NBU on Thursday to buy it with the rate of 4,74/$1, that later was confirmed by currency interventions, was today within quotations that were registered while session closing on Thursday.

Session was opened at the level 4,60/4,65, and firstly the rate started descending from the lowest mark in 4,60, but soon the tendency changed and rate increased up to 4,61/4,64 per $1.

Majority of bargains was concluded today by market participants with the rate 4,615/4,63, with 4,58/4,64 per $1 a day before.

Next week as before, situation at the market will cause slight USD weakening, but dynamics of its movement will depend a lot on the NBU actions.

At DEPO-market, as it was expected, rates decrease on interbank credits was strengthened before week-ends. It is explained by market participants' desire "to make temporarily free resources working" that strengthens pressure on creditors and decrease the price of credits issued.

"Overnight" rates in UAH fluctuate today within 1,0/4,0%, with 2,0/9,0% a day before. Average weighted price on actually concluded bargains decreased by 3,1%, from 4,2% at the end of Thursday. Volume of bargains at 17:00 КТ decreased by 2,62 bn, from 3,62 bn in accordance with bids results on Thursday.

Credit rates for the term "from 2 to 7 days" decreased again today, it constituted 5,0/10,2%, with 6,0/14,4% a day before. Average weighted price on actually concluded bargains decreased by 6,9%, from 10,7% yesterday. Price decrease caused positive influence on volumes of concluded operations that increased by 124 m from 88 m on Thursday.

Credit rates for the term "from 22 to 31 days" are today within 14,0/18,0%, they were about 17%±0,5% p.a. on a previous day.

Comments by S.N. KRAMAROVA, Director of Treasury of JSCB "PRAVEX-BANK"

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