Financial news

At international foreign currency market the US dollar reached its high against the euro for the last two and half week

International foreign currency market. Today the US dollar reached its high against the euro for the last two and half week: in the morning slow decrease against European currencies was observed in the expectation of data publication on GDP index in the Eurozone. This index grew by 0.8% in comparison with previous quarter and by 2.2% against analogical period in 2007 while according to analysts' prognosis GDP growth will amount to 0.7% or 2.2% correspondingly.

At 16:00 KT, Heads of European, American and Japanese Central banks made joint statement. Ben Bernanke, Chairman of the US Federal Reserve System, declared that he esteemed interest rates level being well positioned in the USA but warned there were inflation risks due to the US dollar low exchange rate. After that statement, the US dollar jumped sharply against all world currencies by more than 100 points. Bernanke also believes that the US economy developed weakness due to high oil price. Thus, the Fed is going to control totally situation within financial sector in order to place the US economy on a higher level.

Technical levels on main currency pairs as of 17:48 КТ:

At the Ukrainian inter-bank foreign currency market, the National Bank before opening of bids declared once more indicative parameters of possible currency interventions having decreased buying rate in comparison with the last intervention by 2 kopecks — to 4.82/$1. These news accelerated the exchange rate which immediately grew up to the level of 4,76/4,81, in comparison with 4,72/4,74 at bids closure on Monday. But dealers' incomplete confidence in renewal by the National Bank of interventions and the necessity of quick settlements with clients forced the sellers to reduce the rate which as a result decreased to 4,73/4,76 per $1.

Bids were closed with the NBU having entered the inter-bank and having bought out a portion of excessive currency offer at previously declared rate — 4,82/$1.

The majority of deals was concluded today by market participants within the limits of 4,76/4,78, with 4,74/4,76 per $1 at bids on Monday.

At DEPO-market, rates on inter-bank credits keep decreasing and rate of decrease accelerated due to currency interventions being carried out by the National bank which ensured additional UAH liquidity inflow into the market.

Overnight credit rates in UAH decreased to 8,0/12,0%, from 15,0/20,0% in the morning and to 14,0/20,0% at bids on Monday. Significant rates drop ensured average weighted price decrease on concluded deals by the end of the day to 16.0% from 17.1% according to trading results on Monday. Transactions volume increased a bit and amounted to UAH 3.67 bn with UAH 3.59 bn a day earlier.

Rates on credits for a period "from 2 to 7 days" are today within the limits of 17,0/22,0%, with 16,5/25,0% a day earlier. Average weighted price on actually realized transactions amounted to 18.1% with 19.2% on yesterday's bids. The volumes of concluded transactions grew approximately in threefold — to UAH 240 bn.

Rates on credits for a period "from 22 to 31 days" are today within the limits of 17,3/28,0%, against 12,7/19,7% on previous bids.

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

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