The National Bank of Ukraine set the official exchange rate for the hryvnia at a record low of 45.06 per US dollar on Tuesday, October 6, as the national currency weakened by seven kopecks.
The new benchmark marks a second consecutive historic low for the Ukrainian currency against the dollar, breaking the previous record of 44.99 hryvnias set on October 5.
Commercial banks across Ukraine raised their average dollar selling rate by 11 kopecks on Tuesday to 45.36 hryvnias per dollar. Banks were buying the American currency from customers at an average rate of 44.74 hryvnias per dollar.
At foreign exchange kiosks, non-bank currency outlets operating across the country, the average buying price for the US dollar stood at 45.00 hryvnias on Tuesday morning, while the selling rate was 44.85 hryvnias per dollar.
Euro rates and commercial market movements
In contrast to its decline against the dollar, the hryvnia gained ground against the euro. The central bank set the official euro rate at 50.48 hryvnias per euro for Tuesday, representing a five-kopeck strengthening for the domestic currency.
Commercial banks lowered their average euro selling rate by six kopecks to 50.97 hryvnias per euro, offering a buying rate of 50.17 hryvnias. Cash euro transactions at exchange kiosks recorded a rate of 50.97 hryvnias per euro for purchases and 50.65 hryvnias per euro for sales.
The hryvnia, which was introduced as Ukraine's national currency in 1996 and is subdivided into 100 kopecks, has seen its exchange rate managed by central bank interventions to maintain macroeconomic stability.
Central bank interventions and market outlook
Analysts at investment group ICU said the National Bank of Ukraine sold a record 5.5 billion dollars in foreign currency during September. The sales marked an all-time monthly high for intervention by the regulator.
Headquartered in Kyiv, the National Bank of Ukraine acts as the country's central monetary authority, holding foreign currency reserves to buffer the national economy against exchange rate volatility.
ICU, a financial services firm based in Ukraine, said the central bank will likely continue to restrain sharp hryvnia devaluation during October while gradually guiding the dollar exchange rate closer to 45.8 hryvnias per dollar.
