Financial news

US dollar reached an all-time high against Euro and Swiss Franc

International foreign exchange market. Today US dollar reached the higher range by now against Euro and Swiss Franc. After yesterday's leap of American currency market participants were not very active. Currency fluctuated at the range less than 100 points. Index of business activity in Eurozone decreased in July 2008 to -0,21 points, being +0,13 in June. Today's index became the lowest rate since May 2005.

Number of work places in private sector in USA in July increased by 9, 000. Such figures along with data on oil prices decrease and share market growth back up the American currency.  However still exists the probability of decrease due to instable financial sector in USA.

 Technical levels on main currency as of 17:35 КТ:

On Thursday, July 31, the following macroeconomic data may have critical impact on the world exchange rate (Kyiv time):

10:55 — Germany-Unemployment rate.

12:00 — ЕU — Assessment of consumer prices index.

15:30 -USA — GDP volume change for the quarter. Number of original applications for unemployment compensation.

At Ukrainian interbank foreign exchange market the US dollar gradually loses its position after the leap the day before due to another NBU intervention. American currency exchange rate was about 4,65/4,68, being 4,66/4,70 by trading closure on Tuesday, that made the quotations decrease by 4,645/4,66 per $1.

Nevertheless by trading closure the US dollar could regain losses in excess by increasing up to the range at 4,655/4,69. Decrease of US dollar price due first of all with large inflow of currency in summer time comparatively to other seasons. Therewith the currency demand during summer is significantly lower because of absence of weighty payments, bound to energy costs payments.  That's why the NBU interventions will be actual in order to avoid hryvnia rate growth by the beginning-midst of September.  

Major part of deals was concluded today by market participants in range of 4,65/4,66, with 4,67/4,70 per $1 the day before. Today the NBU didn't participate at trading.

At DEPO-market the price of hryvnia credits significantly decreased if to compare with previous day (taking into consideration considerable balances on correspondent accounts of commercial banks within the NBU).

Overnight credit rates today are at range of 1,0/4,0%, being 1,5/8,0% on Tuesday. Average weighted price by 17:00 КТ changed unessentially, making 3,1%, from 2,9% the day before. Volume of transactions by 17:00 КТ grew up to 2,9 bn, from 3,9 bn. on Wednesday's results.

Rates on credits for a period of "from 2 to 7 days" also show a negative dynamics fluctuating during the day within the range of 7,0/12,0%, being 8,0/13,5% the day before. Average weighted price for actually concluded transactions decreased by 8,2%, from 8,9% on Tuesday. Volume of granted credits also decreased 159 m, from 254 m yesterday.

Rates on credit for a period "from 22 to 31 days" are fluctuating today at the range of 10,0/15,0%, being 14,0/15,0% on previous working day.

On Thursday the cost of resources for all positions shall grow due to report onset date.  

Comments by S.N. Kramarova, PRAVEX-BANK Treasury Director 

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