Daily Insight-Liquidity up with NBU support; UAH\'s TWI up on global conditions worsening

Ukraine\'s currency declined yesterday as domestic liquidity recovered after a short-lived marginal contraction. Interfax-Ukraine reported the USD/UAH exchange rate moved 0.17% closing at 8.1260/USD from the previous day\'s 8.1220/USD. The NBU\'s weighted average rate was up 0.19%. Global FX markets have worsened, particularly after a top official from the PBOC, China\'s central bank, declared consumer inflation to be a serious issue after the China CPI showed that inflation rising to 3.2%, a 10-month high. Any potential monetary tightening in China would have negative implications for a number of economies that depend on China\'s demand. In general, a sign that China may grow this year at a slower pace than previously forecast darkened the outlook for global growth. The USD index rose 0.37% yesterday, reflecting yesterday\'s risk-averse mood at the markets. In due course, the UAH\'s real TWI added 0.44%.
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