Alpari analyst forecasts further decline in dollar against hryvnia this week

"The dollar exchange rate began to slow down its growth rate last week, the hryvnia began to strengthen on Tuesday, and the dollar closed the [trading] session in minus, falling in price to [UAH] 28.35, the dollar was trading below its minimum on Monday at [UAH] 28.30 already at the closing on Wednesday. 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 restrain 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.

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