Hryvnia is stable

Макроэкономика 11.12.2017 On the last day of the week, the national currency almost did not change against the US dollar, but slightly strengthened. Liquidity in the banking system decreased by UAH2bn, which supported the hryvnia and lowered the demand for foreign currency in the local market. Overall, the hryvnia weakened by 0.2% over the past week. However, next week, the Ukrainian currency may be under pressure because of a transfer to the banking system of UAH4.4bn from the last tranche of the NBU to the budget. Thus, on Friday, the hryvnia increased by 0.04% to 27.1093 USD/UAH. It sold for 27.03 USD/UAH versus 27.2 to buy at the Ukrainian cash market. Its CPI-based real trade-weighted index fell 0.06% to 111.41; in year-on-year terms, it is down 1.88% from 113.54 last year. The US dollar rose on Friday against the other major currencies in world markets. Positive attitudes toward anticipated tax reform supported this growth, along with the news about the continued financing of the government by December 22. The growth of jobs in the United States amounted to 228,000, which exceeded the expectation of 200,000. However, the growth of the average hourly wage amounted to 0.2% against expectations of 0.3%, which adversely affected the greenback. Nevertheless, the DXY index traded at 93.801-94.087, closing up 0.1% to 93.901. The single European currency decreased against the US dollar during trading on Friday in the absence of important macroeconomic news, but slightly restore its losses to the end of the day. Thus, the euro traded within 1.173-1.1777 EUR/USD and finished at 1.1773 as the day before. The Chinese yuan did not change much against the growing dollar as international foreign exchange reserves reached US$3.12tn, an increase of US$10.1bn in November. Accordingly, the renminbi finished trading at 6.6209 USD/CNY. Growing oil prices supported the Russian currency on Friday, when the ruble grew despite the strengthening of the dollar in world markets. Also, the ruble supported the existing demand for local financial assets from foreign investors, although it is gradually declining. The ruble traded within 59.0455-59.419 USD/RUB, and closed up 0.1% to 59.1269.