Ukraine devalues currency to record low

The National Bank of Ukraine on Thursday devalued the local currency, the hryvnya, to an all-time low against the U.S. dollar and the euro. The bank moved down the official rate of the hryvnya currency by 6 percent to about 12.6 per dollar, while the new exchange rate against the euro was pegged at 17.4, compared with Wednesday's figure of 16.3 hryvnya per euro. The bank's move comes shortly after the hryvnya fell to a record low against the basket of two currencies during the recent interbank currency exchange trading. During the trading session, the hryvnya depreciated 6.5 percent against the dollar to 13 and was 4 percent weaker at 18.02 per euro. Local economists said that the unstable political, economic and security situation in Ukraine, including tension with Russia, caused the devaluation of the hryvnya. The hryvnya has lost more than 37 percent of its value against the dollar since the end of last year, when it was worth around 7.99 a dollar.