U.S. dollar may weaken against hryvnia by weekend – expert

Analyst with RoboForex Andriy Goilov says he expects further weakening of the U.S. dollar against the hryvnia, Ukraine's national currency, by the end of the week, to UAH 28.10 per dollar.

"This week, I expect further decline in the U.S dollar forex rate against the hryvnia to UAH 28.10 per dollar. A single European currency [the euro] is likely to also weaken against the hryvnia, to UAH 34.10 per euro," Goilov told UNIAN on January 12.

Read alsoHryvnia keeps strengthening to U.S. dollar on Jan 12On January 11, the hryvnia forex rate against the dollar was above UAH 28.20. According to the expert, the National Bank did not participate in the auction since the dollar was devaluating smoothly. Trading on the interbank forex market related to the U.S. dollar/hryvnia currency pair ended at UAH 28.16 on Monday, while the euro weakened against the hryvnia to UAH 34.17.

Goilov added that today, January 12, the Finance Ministry at weekly auctions to place government domestic loan bonds would offer bonds in hryvnias with six-, 12-, 18-, 24-, and 36-month maturity periods and those in the U.S. dollars with a 12-month maturity period.

"The main intrigue is whether non-residents will emerge today with currency sales on the interbank market to buy government domestic loan bonds. If the supply on their part is weak on the market, it could turn quotations toward the depreciation of the national currency against the dollar and the euro," he said.

Background

The National Bank of Ukraine (NBU) set the official forex rate for January 12 at UAH 28.20 to the U.S. dollar, which let the country's national currency strengthen by eight kopiykas.

Previous forecast

• On December 21, 2020, Director for Scientific Work of the Institute for Economic Research and Policy Consulting Veronika Movchan said the hryvnia forex rate against major currencies would not change much by the end of 2021, however, fluctuations are possible throughout the year.
• On December 22, 2020, experts projected the dollar forex rate might change closer to the New Year holidays.