As foreign investors re-enter the government bond market, the hryvnia strengthens

As foreign investors re-enter the government bond market, the hryvnia strengthens, write analysts from Alpari, Dragon and ICU. The dollar now buys 28 hryvnia, a rate little changed in nine months. ICU wrote yesterday: “Foreigners’ activity in the bond market continued to support hryvnia exchange rate. Due to a large supply of hard currency, the hryvnia appreciated during most of last week…Recovery in foreigners’ demand for local-currency debt increased the supply of hard currency, and the [central bank] responded by purchasing hard currency into reserves. In total, the NBU purchased almost US$300m.”