This week the dollar exchange rate will continue to decline to UAH 28.10 and if the NBU pursues a policy similar to last week and does not redeem the surplus currency keeping the dollar exchange rate, the hryvnia may gradually strengthen to UAH 28.00, according to Alpari.
“The dollar exchange rate began to slow down its growth rate last week, the hryvnia began to strengthen on October 6 and the dollar closed the trading session in minus, falling in price to UAH 28.35, the dollar was trading below its minimum on October 5 and UAH 28.30 already at the closing on October 7. If the NBU pursues a policy similar to last week and does not buy the surplus currency while keeping the dollar exchange rate, the hryvnia can systematically strengthen up to UAH 28.00,” said Maksym Parkhomenko, an analyst at Alpari.
According to the expert, the reason for this will be the sale of the dollar, which now restrains expectations of future NBU’s interventions to buy the dollar in the market. If these expectations are not met, traders will reduce positions regarding the dollar and potentially their actions could bring the rate below UAH 28.00 per dollar. This week the dollar exchange rate is expected to continue to decline to UAH 28.10.
During the last week, the dollar’s exchange rate against the hryvnia sank in all segments of the foreign exchange market, with an overall decline of 20 kopecks on average. (Ukrinform/Business World Magazine)