Banker dismisses Russian attacks as cause of euro's surge against hryvnia, suggesting global factors

The growth of the euro today is not due to attacks. The exchange rate of the euro against the hryvnia has been increasing in recent days, following the strengthening of the euro against the dollar on the global market, according to Yuriy Krokhmal, head of treasury products sales at Avangard Bank.

In a comment to LIGA.net, he shed light on the situation at the interbank market on Monday, August 26, where the euro crossed the 46 hryvnia mark for the first time.

"Such dynamics occur due to expectations of a key rate reduction in America in the near future and negative macroeconomic data on the US labor market," he said. But he added that the situation on the interbank market, despite the strikes, remains manageable and stable. "There is a slight weakening of the hryvnia, but no sharp changes in the exchange rate are expected," said the banker.

His colleague, financier and bank market expert Stanislav Shlapak points to similar reasons.

"The euro/hryvnia exchange rate is a reflection of the exchange rate of the euro/dollar pair on international markets. The exchange rate of the euro against the dollar has recently been strengthened on the expectations of investors that interest rates in the United States may decrease at a slightly higher rate," he told LIGA.net.

In the evening of August 26, the official exchange rate of the euro from the central bank crossed a new "psychological" limit – at 46 hryvnias.

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