Financial news

US dollar is under the pressure at Ukrainian interbank foreign exchange market

International foreign exchange market. Today's day was successful for US dollar. Euro/dollar pair lost almost 200 points, pound/US dollar — more than 100 points, USD/Swiss franc increased almost 150 points.

During the first half of a day currency pairs fluctuated in the narrow corridor. Impulse on European currencies was made by the news about discount rate increase of European Central Bank from 4% to 4,25%, as well as further comments of Trichet Chairman of European Central Bank at press-conference that announced that inflation in Euro zone is quite high and rate increase was necessary not to admit secondary inflation. Analysts expected exactly such result. During some minutes USD lost 100 points, and kept decreasing during next hours.

At bids during the first half of a day the oil futures increased USD 145 per barrel. Traders hurried to buy more futures before long holidays in the USA that caused agiotage.

Technical levels on main currency pairs at 18:07 КТ:

At Ukrainian interbank foreign exchange market US dollar keeps being under pressure against background of considerable offer and without interventions on behalf of the NBU. At the beginning of the week USD increased as a result of purchase of market offer by the National Bank of Ukraine but day after day the quantity of purchased currency increases causing pressure on it. Besides, today's offer could be higher than previous one before holidays in the USA due to celebration of the Independence Day.

Bids were opened today at the level 4,58/4,63 per $1, but sellers were not so optimistic and they had to decrease rate bringing its level to 4,55/4,57 per $1 by the end of the session.

Majority of bargains was concluded today by market participants within 4,56/4,58 with 4,60/4,63 per $1 a day before.

At bids of Friday the activity will be minimum one and the rate will remain within today's range.

At DEPO-market situation will be ameliorated and credit rates approach the level of the beginning of the year when they are within 2-4%.

"Overnight" rates in UAH by the end of the day decreased by the level 2,0/5,0% with 6,0/10,0% in the morning and 4,0/22,0% on Wednesday. Average weighted price on actual bargains decreased today almost twice by 6,6% from 12,0% yesterday. Volume of bargains at 18-00 КТ made up 3,36 b, having changed only just 5-10 m.

The amelioration of situation at credit market was reflected in credit rates as well for the term "from 2 to 7 days" that fluctuated today at the level 10,0/17,0% with 14,0/18,0% yesterday. Average weighted price on actually performed bargains decreased today by 13,4% from 17,2% on Wednesday. Volume of concluded operations decreased today by 175 m from 211 m.

Credit rates for the term "from 22 to 31 days" are today within 16,5/18,5% against 23,0/25,0% on Wednesday.

Comments by S.N. KRAMAROVA Director of Treasury of PRAVEX-BANK.

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