Financial news

US dollar increases at inter-bank foreign exchange market

Inter-bank foreign exchange market. The first part of the day was characterized by US dollar increase. In accordance with information of National Statistics Bureau of Perfidious Albion, number of applications on unemployment benefit for April in Great Britain increased on 7 200, in spite of analysts' expectations that numbers of applications will be unchangeable. Besides Bank of England in its quarterly report warned about inflations acceleration in Great Britain that assisted pound to reach its three-month minimum level. US dollar kept growing waiting for publication of consumer prices index in the USA. It is one of the main macroeconomic indicators showing inflation level in the country. Data about retail sales in the USA caused positive influence on dollar.

After publication at 15:30 КТ of American index of producers' prices, US dollar started decreasing. Analysts expected prices growth 0,3%, however they increased 0,2% (in monthly numeration). If macroeconomic data on economics in the USA keep positive dynamics, then in medium-term and long-term perspective US dollar will keep growing.

Technical levels on the main currency pairs at 18:01 КТ:

At Ukrainian inter-bank foreign exchange market on Wednesday bids were performed without significant changes, US dollar cost from UAH 4,77 to UAH 4,80 per $1. In the middle of the session American currency got considerable support on behalf of gross buyer as a result of which rate increased for a while by the level 4,785/4,810, from 4,77/4,79 earlier. However impulse that caused US dollar growth subsided as quickly as appeared and bids returned to the previous level.

Majority of bargains was concluded today by market participants within 4,78/4,79, that 0,5 kopecks less than previous day. US dollar strengthening today was complicated by increased rates on inter-bank credits in national currency but by the end of the evening situation at resource market was improved that can positively influence USD/UAH rates.

At DEPO-market, rates on inter-bank credits began to grow from the morning thus continuing yesterday trade closing tendency. But this growth has more speculative character, and in the evening, liquidity increase connected with refinancing credits providing by the NBU to commercial banks caused more sweeping quotations decrease.

"Overnight" credits in UAH fluctuated today within the range of 14/20% and decreased by the evening to 10,0/13,0%, with 12,0/17,0% a day earlier. Average weighted price on concluded transactions by 17:00 KT increased to 17,4%, from 13,0% on Tuesday. The volume of transactions decreased at the same time to UAH 2,64 billion from 4,91 billion.

Credit rates for a period "from 2 to 7 days" increased to the level of 13,0/20,0%, from 14,5/15,1% a day earlier. Average weighted price on concluded transactions rose to 18,0% having added 3,1% to yesterday level. The volume of transactions decreased to 109 million from 178 million during two previous days.

Rates on credits for a period "from 22 to 31 days" are today at 15,0/19,6% level with  18,9/20,9% at yesterday bids.

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

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