The hryvnia continued to decline on Wednesday, down 0.2% to 26.0796 USD/UAH, caused by excess demand for the US dollar in the local FX market amid the USD's strengthening globally. At the same time, the decreasing liquidity level (see comment on liquidity above), which hit fresh year's low on Tuesday, did not help the hryvnia to recover recent losses. In the Ukrainian cash market, it sold for 25.95 USD/UAH versus 26.17 to buy. Its CPI-based real trade-weighted index rose 0.45% to 106.45; in year-on-year terms, it is up 9.3% from 97.39 last year.
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