Financial news

Inter-bank credit rates keep increasing at DEPO-market

International foreign exchange market. This morning the US dollar kept increasing but already after 12:00 KT insignificant correction began as regards main European currencies.

In Germany retail sale volume decreases second month running. In May, inflation in Eurozone accelerated up to highest 3.6%. Against the background of such events, European economy looks feeble.  Jean-Claude Trichet, Head of the ECB, declared in an interview that the ECB would make all required measures to preserve price stability.

Confidence index in the USA decreased in May to 59.8 points from 62.6 points a month earlier.

Towards the end of the day European currencies began slowly to strengthen their positions.

Technical levels on main currency pairs as of 17:59 KT:

At the Ukrainian inter-bank foreign exchange market, the US dollar exchange rate decreased after Thursday's growth up to the mark of 4,80/$1. The dollar reached this level after NBU's declaration about its willingness to buy out currency excess at 4,84/$1 and consequent intervention at declared exchange rate. The decrease is caused by market participants' doubts whether the NBU will today also buy out currency at inter-bank. These doubts were confirmed later as the National Bank considered the market to be well balanced and did not take part in bids.

The US dollar rate decreased today to the level of 4,745/4,765, from 4,78/4,81 at the opening. The majority of deals were concluded today within the range of 4,77/4,79 in comparison with 4,74/4,80 per $1 a day earlier.

At DEPO-market, rates on inter-bank credits increased once more which is explained solely by traditionally limited offer at reporting date.

Thus, rates "overnight" in UAH increased today to 18,0/25,0%, in comparison with previous bids closing level of 13,0/18,0%. Because of rates increase average weighted price on concluded deals by 17:00 KT grew to 21,7%, from 17,3% according to previous session results. Transactions volume by the same period decreased to UAH 1,52 bn from 2,57 bn a day earlier. By the end of the day on Thursday registered deals volume amounted to 3,74 bn.

Rates on credits for a period "from 2 to 7 days" amount today to 23,0/30,0%, in comparison with 18,0/25,6% a day earlier. And average weighted price on actually concluded deals increased to 26,1%, from 22,4% on Thursday. Concluded transactions volume at this increased to 188 million from 59 million on previous session.

Rates on credits for a period "from 22 to 31 days" are today within the limits 18,0/30,0%, with 12,5/27,9% on previous bids but no actual transactions on credit issuance were performed for this period.

"Overnight" credits in US dollars fluctuate today within the limits of 4,0/10,0% with 4,0/8,0% p.a. on Thursday.

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

[You can subscribe for Banks news]