Daily Insight-Domestic liquidity shows signs of recovery; UAH rallies along with USD

While the USD/UAH increased a mere 0.04% to 8.1555/USD, the UAH's trade-weighted value rose for the 3rd consecutive day on declines in the RUB and the EUR. Despite the higher crude oil price (Urals up 1.03% to US$104.10/bbl), the RUB fell below the 33.10/USD threshold. The euro slid 0.38% to 1.2979/USD with other major currencies as the USD rose, with the USD index up 0.59% yesterday, implying a 4.73% year-to-date increase. The strong USD pushed the UAH 0.33% higher in the CPI-based trade-weighted terms, up 4.94% year-to-date, nearly matching the year-to-date performance of the USD index. This underscores the reality of Ukraine's monetary policy of a USD-pegged FX regime.

Attachment: Daily Insight report with supporting charts and tables for all comments (pdf: 11 pages, 806KB)