The Ukrainian currency market on Tuesday, May 26, showed interesting dynamics: the US dollar, which had just reached historical highs, slightly retreated, while the euro continued its rise. The National Bank of Ukraine (NBU) officially fixed new rates, reflecting the current economic situation and investor sentiment.
Updated Rates: Figures and Facts
According to official NBU data, the US dollar rate on May 26 was 44.24 hryvnias. This is 2 kopecks less than the previous day, when the currency touched the 44.26 UAH mark. Such a decrease, although insignificant, indicates a temporary relief of pressure on the dollar after a series of sharp jumps.
A different picture is observed with the euro. The European currency continues to rise, and on May 26 its rate reached 51.52 hryvnias. This is 19 kopecks more than on May 25, when it was 51.33 UAH. Such a sharp rise in the euro may indicate changes in market expectations or the influence of external factors.
What Stabilizes the Market: Expert Analysis
Taras Lesovyi, Director of the Financial Markets and Investment Activities Department of "GLOBUS BANK," explained in a comment to RBC-Ukraine that the stability of the currency market at the end of May is supported by several key factors.
One of the main factors was the situation in the fuel market. After a significant price increase in March, when gasoline rose by 14% and diesel by 36%, the growth rate slowed down significantly in April. In May, there were no sharp price jumps, which positively affected public sentiment.
The expert noted that fuel prices directly affect the currency market, as they shape the expectations of people and businesses. When fuel prices rise sharply, the population more often buys currency as a way to preserve funds. Conversely, stabilization at gas stations reduces psychological demand for the dollar and euro.
Inflation and Future Forecasts
An additional factor of stabilization is the expected slowdown in inflation. By the end of May, it may be around 0.5–0.7%, and on an annual basis, it may decrease to 8%. Such a slowdown in inflation has a positive impact on the economy as a whole, facilitates planning for businesses, and partially reduces demand for foreign currency.
The absence of sharp price shocks also increases interest in hryvnia savings instruments, particularly deposits and internal government bonds (OVDP). This indicates that the population is beginning to trust the hryvnia more than before.
Conclusions
Thus, the Ukrainian currency market at the end of May shows signs of stabilization. The dollar has slightly retreated, the euro continues to grow, but the overall situation looks more predictable due to the stabilization of fuel prices and the slowdown in inflation. Experts believe that this is a positive signal for the economy and the population, which may contribute to the further strengthening of the hryvnia.