The dollar is breaking records again: the official exchange rate of the National Bank updates the historical maximum for the second day in a row

The dollar is breaking records again: the official exchange rate of the National Bank updates the historical maximum for the second day in a row

The National Bank of Ukraine has resumed weakening the hryvnia and for the second consecutive day is updating historical highs in the hryvnia/dollar pair. Yesterday the official rate stood at 44.2271 UAH/$, and today it rose to 44.2341 UAH/$. The previous record was set in mid-March at 44.16 UAH/$.

The reason was a noticeable surge in demand for the US dollar on the interbank market — trading volume increased by 42%. While $202.4 million changed hands on the Bloomberg platform yesterday, today’s volume reached $287.1 million.

Against this backdrop, the hryvnia exchange rate against the euro is changing only slightly: yesterday the NBU fixed it at 51.3034 UAH/€, and today it edged down marginally to 51.3027 UAH/€. This remains well below the April peak of 51.913 UAH/€.

The euro’s decline against the dollar on global markets remains the main driver of this dynamic.

Bankers say the NBU is deliberately weakening the hryvnia at the government’s request — to convert incoming foreign aid at a more favorable rate and cover the budget deficit.

Additional pressure on the hryvnia comes from rising demand for dollars amid higher energy and other commodity prices.