Ukraine’s hryvnia continues to gain on US dollar – forecast
According to experts, the hryvnia strengthened by almost 50 kopecks during the week (Photo:Elizaveta Sergienko/Press Center of the NBU)
Ukraine’s hryvnia continues to gain on the US dollar, with an average selling price of UAH 38.57 per dollar on March 10, down from UAH 39.05 per dollar on March 3, according to finance.ua.
Experts predict a smooth strengthening of the hryvnia.
The market is currently within the margin of UAH 38.25-39.00 per dollar, said Anton Kurinnyi, a dealer at OTP Bank’s global markets department.
“Just like before, there is a shortage of cash hryvnia. Besides, there is an opinion that the black market has now fallen sharply, so the demand for cash dollars has decreased,” he said.
According to analysts, one factor affecting the foreign exchange market is farmers selling foreign currency to purchase equipment and products for the coming season, which is usual at this time of year.
Combined with the possibility of buying foreign currency on the interbank market, this has had a significant impact on the balance of supply and demand, says Avangard Bank’s head of treasury products sales Yuriy Krokhmal.
“The dynamics of the last two weeks also influenced devaluation sentiments in general, increasing public confidence in the hryvnia,” he said.
“Additionally, interest rates on placing hryvnia deposits are gradually increasing, which is another factor that regulates the demand and supply of cash currency, and plays in favor of the hryvnia.”
Krohmal predicted that one can continue to expect a smooth strengthening of the hryvnia over the next week.
Kurinnyi agrees, speculating that the hryvnia could reach as high as UAH 38.00 per dollar.
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