Financial news

US dollar showed insignificant growth against Euro and Swiss franc

International foreign exchange market. After long holidays in the USA, today dollar showed insignificant growth against Euro and Swiss franc. However US dollar showed the strong growth, more than 120 points against British pound. Such weakening of English currency is connected with "bad" data on the level of industrial production in Great Britain. Industrial production decreased 0,8% in comparison with April and 1,6% in comparison with analogous period of the last year. Analysts expected production decrease just 0,1%. In Germany the same index decrease 2,4%, while waiting decrease 0,4%.

US dollar growth was also caused by the point of view expressed by recourses around the summit of "Group of Eight" about expectation of oil prices decrease.

At present American currency looks stronger than its competitors. Probably American currency increase will take place soon.

Technical levels on the main currency pairs at 17:28 КТ:

At Ukrainian interbank foreign exchange market while returning to full-fledged bids after long holidays US dollar is in demand of participants of bids. Its movement at the beginning of bids was marked within 4,57/4,60 per $1, and later rate increased and made up UAH 4,585/4,63/$1.

The main peculiarity of today's session is the renewal of interventions by the National Bank of Ukraine. The NBU bought US dollars today with the rate of 4,72/$1, with 4,80/$1 during last intervention that it performed on July 01, of the current year. Today's interventions of the National Bank of Ukraine were unexpected for market as supply and demand was practically balanced. Probably by the end of bids heavy seller entered the market, the NBU had to help him due to absence of necessary demand at the interbank market.

Such succession of events during today's session gives grounds to consider that soon USD will be traded within 4,60/4,70 per $1.

At DEPO-market the next balances decrease at the correspondent accounts of commercial banks in the NBU caused interbank credits becoming more expensive, however its influence was smoothed by UAH influence of the NBU after currency interventions performance.

"Overnight" rates in UAH fluctuated today within 4,0/10,0%, with 2,0/8,0% a day before. Average weighted price on actually concluded bargains increased 1% — by 6,1% p.a. Volume of bargains at 17:00 КТ decreased by UAH 2,25 b, from 3,48 b as of the end of Friday.

Rates on credits for the term "from 2 to 7 days" today slightly increased after decrease during the last week. Their movement today was marked within 10,0/14,0%, against 9,0/15,0% yesterday. Average weighted price on actually performed bargains increased by 13,0%, from 11,3% on Friday. Volume of concluded operations decreased by 65,5 m, from 127 m during previous bids.

Rates on credits for the term "from 22 to 31 days" are today within 14,0/16,0%, with 7,0/16,0% on a previous day.

Interbank rates on "overnight" credits in USD made up today 3,75/5,0%, in EUR — 4,25/6,00% p.a.

Comments of S.N. KRAMAROVA, Head of Treasury.

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