The National Bank of Ukraine set its official exchange rate for the US dollar at a record high of 45.54 hryvnias on Tuesday, October 27.
The official rate represents a 34-kopeck weakening of the Ukrainian currency compared to the previous benchmark, surpassing the previous historic high of 45.20 hryvnias recorded on October 26.
Commercial banks across Ukraine followed the move by raising their retail currency prices. The average price to buy a US dollar in Ukrainian banks climbed by 31 kopecks to 45.91 hryvnias, while banks offered to purchase dollars from customers at an average rate of 45.29 hryvnias.
The euro also gained ground against the hryvnia across the banking sector. Commercial lenders increased the average euro selling price by 27 kopecks to 51.46 hryvnias, while offering to buy European currency at an average of 50.67 hryvnias.
Exchange rates in currency booths
Private currency exchange offices in Ukraine posted even higher prices during morning trading. Exchange booths sold US dollars at an average rate of 46.10 hryvnias, while buying dollars from the public at 45.81 hryvnias. The cash euro at exchange kiosks reached 51.70 hryvnias for customers buying notes, while the selling rate for customers stood at 51.35 hryvnias.
The hryvnia has served as the national currency of Ukraine since 1996, divided into 100 kopecks. The National Bank of Ukraine acts as the country's central monetary authority, regulating banking activity and setting daily reference values, while retail currency exchanges and commercial banks handle day-to-day foreign exchange for businesses and households.
Inflation pressures and market forecast
Taras Lesovoy, director of the financial markets and investment activity department at Globus Bank, said that fuel prices and inflation are currently putting pressure on the hryvnia. However, he said that market participants should not expect sharp exchange rate fluctuations before the end of October.
According to his forecast, the dollar rate will fluctuate between 44.85 and 45.25 hryvnias on the interbank currency market from October 26 to November 1. Over the same period, Lesovoy projected that cash market rates for the US currency will range between 44.8 and 45.5 hryvnias per dollar.
