The analyst gave a forecast for the dollar in Ukraine

After surpassing the 28.00 hryvnia mark per dollar, many market participants began to hold the currency back, expecting continued growth of the dollar.

In Ukraine, the trend of the national currency, the hryvnia, to weaken against the US dollar will continue. In the next week, the dollar will break above the level of 28.50 hryvnia. This forecast was expressed by Alpari analyst Maxim Parkhomenko, reports RBC-Ukraine on Sunday, September 20.

He noted that last week the dollar continued its growth against the hryvnia in all segments of the foreign exchange market, adding on average 1%. In particular, in the interbank market the rate rose to 28.18.

“After surpassing the mark of 28.00 hryvnia per dollar, many began to grow expectations of devaluation. Because of this, many participants hold the currency, expecting continued growth of the dollar. With such sentiments, a deficit in local currency is formed in the market, which pushes the rate even higher. ” – said Parkhomenko.

At the same time, despite the growth of reserves and the preservation of Ukraine’s credit ratings, market participants do not really believe in the improvement of the current situation. Added to the negativity is the increased incidence of the coronavirus and political turmoil, which does not improve the negotiating position with the IMF and the EU on new tranches, added Parkhomenko.

“Because of this, the hryvnia will continue to fall and in the spot market at the end of next week it will reach the level of 28.45 hryvnia per dollar. The interbank market will reach the level of 28.50 hryvnia per dollar during the week,” predicts analyst Alpari.

As a reminder, on September 21, the National Bank set the official rate at 28.17 UAH per dollar. Thus, it rose to the highest level since the end of March 2020. The rate was highest this year only on March 30 (28.18 hryvnia per dollar), when the US currency rose in price in the middle of the acute phase of the coronavirus pandemic.

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