The Ukrainian hryvnia strengthened against major foreign currencies on Friday, 28 August, as commercial bank exchange rates for the US dollar dropped. Commercial banks across Ukraine lowered the average buying rate for the US dollar by 1 kopek to 44.87 hryvnias per dollar.
Customers looking to sell US currency in Ukrainian banks received an average rate of 44.42 hryvnias per dollar on Friday. Meanwhile, the average bank rate for the euro decreased by 4 kopeks to stand at 52.29 hryvnias per euro, with banks offering a purchase rate of 51.68 hryvnias per euro for selling European currency.
At independent currency exchange kiosks across Ukraine, the average price to buy US dollars on Friday morning stood at 44.80 hryvnias per dollar, while customers could sell dollars at 44.70 hryvnias. The cash euro rate at exchange offices reached 52.14 hryvnias per euro, with the selling rate listed at 51.95 hryvnias per euro.
Official rate and market outlook
The official exchange rates published by the National Bank of Ukraine, the country's central bank responsible for setting daily benchmark currency rates, reflected a stronger national currency. The central bank set the official rate for 28 August at 44.54 hryvnias per dollar, marking a 3-kopek gain for the hryvnia compared to the previous trading figure.
Against the euro, the hryvnia recorded a larger gain in official trading. The central bank fixed Friday's official euro rate at 51.86 hryvnias for one euro, representing a 15-kopek increase in the value of the Ukrainian currency.
Looking ahead to early autumn, financial market conditions are expected to remain bound by import demand. Taras Lesovoy, director of the financial markets and investment activity department at Globus Bank, a Ukrainian commercial lender, said the dollar exchange rate during the first week of September would likely remain within a corridor of 44.6 to 45.1 hryvnias, while the euro would range between 51 and 52.5 hryvnias according to preliminary estimates.
Lesovoy said currency rates over that period would be influenced by high activity among importers. He added that because importer demand is expected to stay strong, demand for foreign currency will likely systematically exceed its natural market supply.
