Financial news

The US dollar began to regain lost positions at the International foreign exchange market

International foreign exchange market. After Friday's news publication on unemployment in the USA, the US dollar began slowly to regain lost positions as was expected earlier. The euro and the pound sterling grew through inertia in the morning, the Swiss franc fluctuated in a wide range, while the Japanese yen decreased against the US currency. Trade surplus in Germany in April 2008 increased up to EUR 17.7 billion in comparison with 15.3 billion in March. Export increased by 1.2% while import decreased by 2.1% in monthly calculation.

Producer price index was published in Great Britain. The index has grown up by 1.6% in monthly calculation and by 8.9% in annual one. Rates of growth in annual calculation were the highest in the history.

U.S. news about volume increase by 6.3% of forthcoming houses selling in April gave support to the US dollar. In March this index decreased  by 1%. This may be a first sign of mortgage crisis completion in the United States.

Technical levels on main currency pairs as of 17:50 КТ:

At the Ukrainian inter-bank foreign exchange market, the US dollar continue its downward movement in the absence of reaction from the NBU which, taking into account market situation, can take place in the nearest days. The US dollar exchange rate at Monday bidding decreased to the level of 4.715/4.730, from 4.73/4.74 in the morning and 4.74/4.75 per $1 at Friday's bidding. Today pressure from offer strengthened but the National Bank found market situation as being balanced and did not enter the market.

The major portion of transactions was concluded today by market participants within the range of 4,725/4,735, with 4,74/4,75 per $1 on the previous day.

At DEPO-market, the banks after a week of improved situation at inter-bank market felt anew UAH liquidity deficit which resulted in 70-100% rates increase in comparison with previous session.

"Overnight" credits in UAH rose in price and was quoted by banks at 8,0/15,0%, with 5,0/11,0% a day earlier. Average weighted price on actually concluded transactions at this increased to 10,4%, from 7,5% a day earlier. The volume of transactions grew insignificantly and amounted to UAH 2.72 billion with 2.54 billion on Friday.

Rates on credits for a period "from 2 to 7 days" increased today to 9,0/20,0%, with 9,5/11,4% a day earlier. Average weighted price on actually concluded transactions increased as a result to 15.5% from 10.7% a day earlier. Volumes of concluded transactions decreased significantly — to 27 million from 111 million on Friday.

Rates on credits for a period "from 22 to 31 days" are today within the limits of 15,0/17,0%, in comparison with 7,0/16,0% at previous day's bids.

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

[You can subscribe for Banks news]