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The Ukrainian Hryvnia Hits 5-month Low

Ukraine's central bank sought to make more calm its currency market on Tuesday by selling USD100 million and promising to stabilize the hryvnia after it fell to a 5-month low against the dollar.

The lack of dollar providing from exporters pushed the Ukrainian currency <Hr=> to 7.95 per dollar on Tuesday, the lowest item since early April, prompting the central bank to offer its support, dealers noted.

"The central bank will continue interventions for as long as it is necessary to smooth the exchange rate fluctuations," the central bank spokesman Serhiy Kruglyk admitted in the regulator's first official statement on the hryvnia's fall that started last week following the departure of a top official responsible for exchange rate policy.

"Our main purpose is supporting a stable national currency."

Ukraine central bank, which had reserves of USD32.7 billion on Aug. 31, added it sold USD100 million on Tuesday.

Market players mention the interventions were effective.

"They (the central bank) have met all the great demand," explained a trader at a foreign bank in Kiev.

The central bank proposed to sell dollars at 7.9269 hryvnias per dollar on Tuesday.



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