The euro grew more expensive across Ukrainian commercial banks and currency exchange kiosks on Monday, August 17, while the US dollar remained steady at bank counters. Commercial banks in Ukraine kept their asking rate for US dollars unchanged at 45.00 hryvnias, while offering an average buying rate of 44.46 hryvnias for customers selling American currency.
By contrast, the average rate for the euro in Ukrainian banks rose by 11 kopiykas to 52.05 hryvnias per euro on Monday morning. Bank clients looking to sell European currency were offered an average rate of 51.41 hryvnias per euro.
The price increases coincided with official adjustments by the National Bank of Ukraine, the country's central monetary regulator. The central bank set the official exchange rate for August 17 at 44.71 hryvnias to the dollar, representing a 1 kopiyka decline for the hryvnia. The national currency weakened further against the European currency, losing 16 kopiykas to reach an official rate of 51.71 hryvnias per euro.
Exchange kiosk rates and market outlook
Street currency exchange outlets across Ukraine reflected similar trends on Monday morning. Exchange kiosks sold US dollars at an average price of 44.90 hryvnias while purchasing dollars from the public at 44.79 hryvnias. Cash euro transactions at exchange kiosks stood at an asking price of 51.95 hryvnias per euro, with a purchase rate of 51.75 hryvnias for those selling European currency.
Taras Liesovyi, director of the financial markets and investment activity department at Ukrainian commercial lender Globus Bank, said the foreign exchange market could experience some nervousness during the week. However, he stressed that there are currently no reasons to expect exchange rates to sharply breach existing levels.
Liesovyi projected that the US dollar would trade between 44.6 and 45.2 hryvnias on the interbank market over the coming days. On the retail cash market, he expected the dollar rate to remain within a range of 44.8 to 45.2 hryvnias.
