UAH retreats further

Макроэкономика 17.06.2015 The hryvnia closed at 21.75/USD yesterday, retouching the previous session's low. Just a few days before the IMF decision on the next tranche to Ukraine, which is anticipated to be completed without complications in early July, media coverage of Ukraine's external debt restructuring negotiations receiving more attention, particularly on the upcoming US$3bn Russian eurobond for which the Kremlin is demanding an early redemption. Although some market players are expectedly sensitive to Ukraine's domestic risks, thus putting downward pressure on the hryvnia, we expect this to reverse following the IMF's decision to issue more funds.