Economics
Hryvnia Jumps After Rate Increase as Ukraine Bonds Drop
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The hryvnia rallied after Ukraine’s central bank raised interest rates by the most since 1998 to stem the world’s worst selloff this year. Government bonds dropped amid a military confrontation in the country’s east.
The currency strengthened 6.7 percent, the most since March 4 on a closing basis, to 11.9000 per dollar at 6:34 p.m. in Kiev, paring this year’s slump to 31 percent. The central bank increased its key rate by 3 percentage points to 9.5 percent yesterday. Government bonds reversed earlier gains, sending the yield on the dollar-denominated debt due April 2023 up 11 basis points to 9.99 percent, the highest since March 20.