The November collapse of bitcoin from levels above $120 thousand to the zone of about $80 thousand was a cold shower for retail investors – primarily young investors, for whom crypto has long become not an exotic, but the main “investment” instrument. But the current correction has not destroyed the interest, but only exposed what professionals have been saying for a long time: in the eyes of some young people, the crypto market looks more and more like high-risk betting rather than classic investments.
A fresh survey by YouGov and Young Men Research Project, published by MarketWatch, shows a generational gap in financial behavior. Among U.S. men ages 18-29:
28% own crypto assets (cryptocurrency and/or cryptocurrency ETFs),
while only 21% are saving for retirement through 401(k) and other classic retirement plans.
Bitcoin remains the “anchor” of the portfolio, followed by Ether and Solana; the share of meme-coin investments is noticeably smaller, but these are the ones that reinforce the impression of a “casino approach” to money management. What’s also important is who exactly we see in these statistics. The research shows:
the higher the income and education level, the more likely a young person is to have both a crypto and a classic retirement account;
among freelancers and those in non-standard forms of employment, crypto is often the only “long term” asset – they simply don’t have access to retirement plans.
So this is not just a story about “irresponsible players” – in many ways it is a reaction to the new conditions of the labor market, where stability and a social package have become a luxury.
For some young people, crypto fulfills several roles at once:
Financial elevator. Against the backdrop of low housing affordability, expensive education and de facto stagnant wages, the temptation to “jump the ladder” through a successful entry into BTC or altcoin is very high. Stories of early holders with X10-X50 fuel expectations.
Part of the online culture. Crypto is embedded in the ecosystem of YouTube, Reddit, X, Discord. There’s also betting, trading, sports betting. For many, it’s a unified medium of pastime and risk. Researchers directly record the intersection of the audiences of cryptoinvestors and online gambling fans.
Distrust of the “old” system. Pensions and traditional funds are associated with bureaucracy, slow returns and lack of control. Crypto, on the contrary, seems to be an instrument of “personal freedom” – even if the real control is limited to knowing a couple of apps and passwords.
All of this makes the crypto market susceptible to waves of FOMO and panic. The November dip after historic highs showed how painful such swings can be for those who went in “on the shoulder of hope” rather than as part of a well-thought-out strategy.
1. The risk of a “lost decade” for personal finances.
If a significant portion of a generation is betting almost exclusively on crypto rather than a diversified portfolio and retirement savings, every major market drawdown sets their financial goals back years. It’s not just about balance sheet decline – it’s about psychological “burnout” from investing itself.
2. Increased market volatility.
The greater the share of participants with a short horizon, high risk tolerance and “game” orientation, the more the market resembles a derivative casino. This amplifies the amplitude of movements and increases the likelihood of sharp drops when macro backdrop or regulatory news deteriorates.
3. Field for regulators.
Crypto’s growing share of youth savings is almost guaranteed to increase regulatory attention, from the US to the EU to emerging markets. Already, restrictions on the marketing of high-risk products, requirements for exchanges to protect unqualified investors, and tighter KYC/AML controls are being discussed.
For countries like Ukraine, where the share of cryptoactive youth is also high, these trends mean an inevitable dialog: how to develop an innovative market without turning it into a mass trap for personal finance.
Outlook: three scenarios beyond November
If we look at the end of the year and 2026 through the lens of retail investors, we can roughly distinguish three scenarios:
“Nervous Stabilization” (baseline).
Bitcoin and large altcoins trade in a wide corridor, some retailers record losses and go into stablecoins or cache, but a core of young holders remain in the market. Crypto is gradually being integrated into more conservative products (ETP, funds), and the growth of interest compensates for the partial outflow of the disappointed.
New wave of euphoria.
Against the backdrop of falling rates, inflows of institutional capital or “Bitcoin in retirement plans” style news, we see a rally again. Young people see the November drawdown as “one more chance to get in” and the market structure becomes even more fragile due to increased shoulder demand.
Regulatory shock.
A major scandal, the collapse of another exchange or a tough package of restrictions in one of the jurisdictions may provoke not only a price spill, but also a mass exit of a part of retail. Against this background, interest in classic instruments (ETFs on indices, bonds, pension plans) temporarily increases.
Which scenario will be realized depends largely on macroeconomics, central bank policy and the depth of future regulatory reforms.
The November collapse showed the main fork for a young investor: to stay in the logic of rates or to switch to the logic of strategy. The answer to this question will determine not only the future bitcoin exchange rate, but also the financial health of an entire generation.
Issue No. 1 – December 2025
The purpose of this review is to provide an analysis of the current situation on the Ukrainian currency market and a forecast of the hryvnia exchange rate against key currencies based on the latest data. We analyze current conditions, market dynamics, key influencing factors, and likely scenarios.
Analysis of the current situation on the foreign exchange market
The first half of December 2025 was spent waiting for the US Federal Reserve Committee to meet and decide on a new key policy rate. On December 10, at the meeting, as expected by markets and investors, the Committee decided on the next stage of easing, which shifted the Fed’s interest rates to a new range: from 3.5% to 3.75%. After announcing the decision on the new rate range, Fed Chairman Jerome Powell said that the Committee decided to cut rates due to a number of factors, including a cooling in the US labor market, i.e. an actual increase in the unemployment rate. According to him, the Fed believes that recent employment figures (about 60 thousand jobs) were “overstated”. “There is no risk-free path for policy as we navigate this tension between our employment and inflation goals. It is our responsibility to make sure that a one-time increase in the price level does not become a permanent inflation problem,” said Jerome Powell.
Whether there will be another rate cut at the end of January 2026 is one of the main questions that the Fed did not answer. The Fed says that the decision on the next vote at the end of January has not yet been made. Jerome Powell believes that after a three-quarter point cut, interest rates are in the neutral range, the level the Fed seeks, as it does not accelerate or slow economic growth. Meanwhile, the Fed chairman rejected speculation that a rate hike might occur next year.
For the EUR/USD pair, another cut in the key policy rate means that the US dollar continues to weaken. In fact, a few days after the Fed’s decision on the new rate range, the rate reached $1.1740, although on the day of the Fed Committee’s vote (December 10) it was at $1.1628. Thus, the dollar is testing new levels. Some Western analysts even believe that a move to $1.1800 and even further is likely.
While the United States is going through stages of monetary policy easing, the European Central Bank continues to maintain a conservative stance. ECB President Christine Lagarde noted that the eurozone economy has demonstrated resilience in the face of geopolitical and economic shocks. However, she emphasized that deeper structural reforms are needed to unlock its full potential, adding that monetary policy alone cannot achieve this goal.
As the Fed’s stance softens and the ECB’s rates remain stable, the rate differential is narrowing in favor of the euro. Therefore, traders now see less downside risk for the euro and expect the EUR/USD pair to remain above $1.1650. The contrast between the Fed’s rates and the ECB’s signals that it will not cut rates stimulates capital outflows to European assets and supports the euro well on the horizon for the next month.
Domestic Ukrainian context
In the first half of December, the hryvnia remained in the range of UAH 42.26-42.33 per dollar (official exchange rate), with a short-term tendency to strengthen – on December 8, the average exchange rate on the interbank market reached the level of UAH 42.03 per dollar, although later in December the exchange rate still returned to above UAH 42.2 per dollar.
In December, the hryvnia was supported by several important factors. One of the most important is the increase in international reserves: according to preliminary NBU data, as of December 1, reserves amounted to $54.748 billion. Thus, in November, reserves grew by 10.6%. As explained by the NBU, this dynamics is due to the largest amount of receipts from international partners since the beginning of the year, which exceeded the NBU’s net sale of foreign currency and the country’s debt payments in foreign currency. Currently, the volume of international reserves is sufficient to maintain the stability of the foreign exchange market and provides funding for 5.6 months of future imports.
In November, the NBU received $8.147 billion in foreign currency from partners, of which the largest amount ($6.880 billion) came from the EU under the G7 ERA initiative and the Ukraine Facility. In November, the NBU’s sales of foreign currency on the market decreased compared to October: the NBU sold USD 2.728 billion on the foreign exchange market and bought back USD 1.3 million to the reserves, so the NBU’s net sales of foreign currency in November amounted to USD 2.727 billion.
The NBU discount rate remained unchanged: On December 11, the NBU informed that it had left the rate at 15.5% per annum. The NBU explained that the decision was necessary to maintain the attractiveness of hryvnia instruments, the stability of the foreign exchange market, and control of expectations in order to bring inflation to the 5% target on the policy horizon.
So far, the situation is such that the hryvnia should not experience any sharp movements, but in the future (as early as 2026), the hryvnia will be under pressure from a number of factors, including possible difficulties with foreign aid (and a reduction in the amount of such aid). In addition, other risk factors that could affect the devaluation trend include an increase in budget spending on the defense sector, a labor shortage in the labor market, complications in the functioning of the energy sector amid constant missile and drone attacks, and new waves of migration abroad.
In total, the NBU’s baseline scenario for 2026 assumes that Ukraine will receive more than $45 billion in international financial assistance. But, as NBU Governor Andriy Pyshnyi explained, further support from international partners, including cooperation with the International Monetary Fund, has a huge impact on the prospects. Importantly, in late November, the IMF mission and the Ukrainian authorities reached a staff-level agreement on a new four-year program under the Extended Fund Facility (EFF) with potential access to $8.1 billion in funding. The new agreement provides for a set of fiscal and monetary policy measures to form the basis of the program, with the main objectives of the program being to maintain macroeconomic stability, restore debt and external sustainability, fight corruption, and improve governance.
US dollar exchange rate: dynamics and analysis
General characteristics of market behavior
In the first half of December, the US dollar moved in a variety of directions on the Ukrainian market, but the prevailing trend was toward strengthening the dollar and, consequently, weakening the hryvnia.
During the first two weeks of December, the exchange rate fluctuated as follows: at the beginning of the month, the interbank sale rate was at 42.37 UAH/$, then on December 8, the hryvnia strengthened to 42.02 UAH/$, and later in December, the hryvnia lost ground: the exchange rate reached 42.43 UAH/$, and then fell back to 42.2 UAH/$.
In the first half of December, the average purchase rate was in the range of 41.9-42.10 UAH/$ on the cash market, and the sale rate was in the range of 42.35-42.55 UAH/$. At bank cash desks, the spread between the buy and sell rates remained unchanged compared to November and amounted to UAH 0.45-0.6 per dollar as of mid-December.
Key factors of influence
Forecast.
Euro exchange rate: dynamics and analysis
General characteristics of market behavior
In the first half of December, the euro steadily strengthened on the Ukrainian market: within two weeks, the official euro exchange rate moved from 48.89 UAH/€ to 49.51 UAH/€.
Key observations
Ø Exchange rate geometry:
o The selling rate for cash euros was initially around 49.45-49.50 UAH/€. However, by mid-December, the euro had strengthened, and the average selling rate for euros on the cash market reached 49.8 UAH/€. This reflects the trend on the interbank market, where at the beginning of the month the selling rate was at 49.28 UAH/€, and in the middle of the month it was 49.50 UAH/€.
Ø Supply and demand:
o Demand for euros remained at a fairly high level, especially from businesses making payments to European sellers in euros. The cash market is also actively buying euros, expecting the euro to continue to strengthen in 2026.
o The spread between the euro’s bid and ask rates on the cash market remained unchanged in December and remained high, ranging from UAH 0.5 to 1 per euro.
Key factors of influence
Forecast.
Recommendations: dollar or euro – buy, sell or wait?
USD/UAH
The US dollar is under pressure from the US Federal Reserve’s monetary policy, as well as uncertainty about the next stages of key policy rate cuts in 2026. The US economy is currently facing significant economic shocks, including tariffs, labor shortages due to Donald Trump’s immigration restrictions, and large-scale government spending cuts. For the Fed, the level of predictability is complicated by the lack of comprehensive price and labor market data, which was suspended during the government shutdown.
In December and early January, markets expect the dollar to weaken further, with a realistic range of $1.1690-1.1810.
For Ukrainian investors, the dollar will remain the key currency of accumulation, and purchases should be considered as part of a medium- and long-term strategy.
EUR/UAH
The euro has been strengthening on the Ukrainian market in December, but the likelihood of sharp fluctuations and short-term pullbacks remains. However, the euro will maintain an uptrend in the near future due to the global market trend of strengthening against the dollar. The strategy of attracting euro currency to investors’ portfolios should be balanced, and although strategically the euro has high growth potential, high exchange rate volatility may affect future returns in case of a decision to exit euro investments urgently.
Overall strategy
The gradual reduction of the US Federal Reserve’s key policy rate is leading to a weaker dollar, and the Fed Committee’s further decisions on the rate level will be influenced by price and labor market data in the US. The euro is steadily strengthening against the backdrop of the Fed’s decisions and the absence of drastic changes in the policy of the European Central Bank, which is still maintaining the current level of rates.
Given global trends, investors should choose the dollar as a key savings currency in their medium- and long-term strategy, as even a weakening of the currency does not affect the liquidity of dollar savings. Savings in euros should be used for short positions and as a portfolio diversification when forming a long-term currency program.
The key forecasts for the foreign exchange market in Ukraine are related to the devaluation of the hryvnia in 2026. This means stable demand for the dollar and frequent spikes in peak demand for the euro. Given the high risks associated with the continuation of hostilities, the difficult energy situation, a decline in economic activity, problems in the labor market, and difficult predictability of funds from partners next year, demand for the dollar will grow in the short term. The National Bank of Ukraine will stick to its exchange rate flexibility strategy, which will mean no sharp devaluation swings and timely smoothing of fluctuations. The upcoming weakening of the hryvnia will allow investors to build a reliable portfolio of foreign currency savings in liquid foreign currencies, with the dollar and euro remaining the main currencies.
This material has been prepared by analysts of the international multiservice FinTech product platform KYT Group and reflects their expert, analytical professional judgment. The information presented in this review is for informational purposes only and cannot be considered as a recommendation for action.
The Company and its analysts make no representations and assume no liability for any consequences arising from the use of this information. All information is provided “as is” without any further warranty of completeness, obligation to be timely or to be updated or supplemented.
Users of this material should make their own risk assessment and informed decisions based on their own evaluation and analysis of the situation from various available sources that they consider to be sufficiently qualified. We recommend that you consult an independent financial advisor before making any investment decisions.
REFERENCE
KYT Group is an international multiservice marketplace FinTech product platform that provides financial companies with access to services for promoting their services, as well as advertising and consulting services.
License of the National Bank of Ukraine for conducting currency transactions (trade in currency values in cash) No. 39806926 dated 06.06.2024.
Issue No. 2 – November 2025
The purpose of this review is to provide an analysis of the current situation on the Ukrainian currency market and a forecast of the hryvnia exchange rate against key currencies based on current data. We consider the current conditions, market dynamics, key influencing factors and likely scenarios for future developments.
Analysis of the current situation on the currency market
International context
In the second half of November, expectations intensified on the international currency market regarding a future reduction in the Fed’s rate at the Fed Committee meeting on 9-10 December. In addition, at the end of the month, Fed Vice Chair and New York Federal Reserve Bank President Williams said that the Fed could cut rates ‘in the near term’ without jeopardising its inflation target.
Investors are now focusing on the Fed’s upcoming decision on the key rate. It is expected that a decision to cut the rate by 25 basis points will be made at the December meeting. This will be influenced, in particular, by new US statistics showing a decline in applications for state unemployment benefits. However, the new data failed to strengthen the US currency, and expectations of a decision to appoint a new Fed chair who will pursue a more accommodative policy are also weighing on the dollar. Currently, the media is reporting that the leading candidate for the post is White House economic adviser Kevin Hassett, who has previously stated that interest rates should be lower than they are under current Fed Chairman Jerome Powell.
November 2025 brought nothing unexpected for the dollar: there were minor fluctuations throughout the month, with the US currency weakening to a low of 1.1648 in the middle of the month. At the end of November, the market reached a certain equilibrium, and the exchange rate reached 1.1584, effectively returning to its level on 31 October.
It is important to note that the situation with the expected rate cut also affects other markets. For example, gold traded at $4,186 per ounce at the end of November, and in January-November this year, the growth rate exceeded 53%. The prospect of another round of monetary policy easing in the US is fuelling demand for precious metals. US tariff policy had the least impact on the dollar in November, as the trade truce between the US and China continues.
Meanwhile, the euro is expected to remain stable and strengthen slightly against the dollar in the near future amid the upcoming Fed meeting and the likely decision on the next stage of easing. A cut in the key rate usually weakens the dollar somewhat, i.e. it strengthens the euro. However, the European Union is closely monitoring the situation in the banking sector: the European Central Bank recently called on lenders to maintain dollar liquidity buffers, highlighting concerns about financial stability that could negatively affect risk sentiment. However, the eurozone economy is currently showing decent growth, thanks in particular to the steady development of the services sector, so there is cautious optimism in Europe that risks capable of undermining the stability of the euro will be avoided.
Internal Ukrainian context
Throughout November, the Ukrainian currency market was dominated by a devaluation trend, and while at the beginning of November the official NBU exchange rate was 41.89 hryvnia per dollar, by the end of the last week of the month it was already 42.30 hryvnia per dollar. The exchange rate did not change abruptly, with a certain smoothness in the devaluation fluctuations, and the National Bank was present on the interbank market with foreign currency offers. However, the level of interventions did not increase significantly compared to the previous month: during the period from 3 to 21 November, the NBU sold $1.925 billion on the market (for comparison, during the last three weeks of October, the volume of interventions amounted to $1.935 billion). Thus, the volume of currency sales by the NBU in October and, ultimately, in November should be almost the same (last month, the volume of NBU interventions amounted to about $3 billion).
Of course, there were also devaluation movements in the cash market in November. While at the beginning of November the average selling rate in the cash market was 42.14 UAH/USD, at the end of the month it was 42.56 UAH/USD.
In Ukraine, demand for foreign currency remains high due to increased imports caused by the need to repair energy facilities damaged by Russian attacks, as well as expectations among both businesses and the population of further devaluation of the national currency. The National Bank of Ukraine is curbing sharp fluctuations with interventions, but is trying not to inject too much into the market, as reserves are still high (49.5 billion dollars at the beginning of November) and must remain so to ensure macro-financial stability.
An important event in November for Ukraine was the announcement that the International Monetary Fund mission and the Ukrainian authorities had reached a staff-level agreement on a new four-year programme under the Extended Fund Facility (EFF) with potential access to financing of $8.1 billion. The new agreement provides for a set of fiscal and monetary policy measures that will form the basis of the programme. The main objectives are to support macroeconomic stability, restore debt and external sustainability, fight corruption, and improve governance. According to the IMF statement, the NBU commits to reducing inflation to a target level of 5% over its three-year policy horizon, while allowing greater exchange rate flexibility to adjust to fundamentals and strengthening the role of the exchange rate as a shock absorber, which will also help maintain adequate central bank foreign exchange reserves. This means that further IMF financing is clearly tied to the devaluation trend, and therefore expectations of a weakening hryvnia in the medium term are entirely justified.
Among the risks that will put pressure on the exchange rate, in addition to geopolitical issues and the difficult situation in the energy sector, there is also the rather vague prospect of financing the budget gap (the difference between state budget revenues and expenditures in 2026). In fact, this will require at least $45 billion in external financing, but the sources of some of these funds are still unknown.
US dollar exchange rate: dynamics and analysis
General characteristics of market behaviour
In November, the US dollar strengthened on the Ukrainian market, and a clear devaluation trend remained.
During November, the exchange rate changed as follows: on the interbank market, the rate rose from 41.01 UAH/USD to 42.25 UAH/USD, and the official NBU rate rose from 41.89 to 42.19 UAH/USD. Interestingly, at the end of the month, the NBU decided to suddenly strengthen the hryvnia: on 27 November, the official exchange rate was 42.30 UAH/USD, and on 28 November, it was 42.19 UAH/USD. On Thursday, 27 November, the interbank market opened with a selling rate of 42.26 UAH/USD, and by the evening, the market closed at 42.22–42.25 UAH/USD. On Friday, 28 November, American banks are closed (as it is the day after Thanksgiving, which is a public holiday), which has a certain impact on the Ukrainian currency segment.
In November, the average purchase rate was in the range of 41.7–42.05 UAH/USD on the cash market, and the sale rate was in the range of 42.15–42.48 UAH/USD. At bank cash desks, the spread between the buying and selling rates is no longer growing; on the contrary, there is a tendency for the spread to narrow: at large retail banks at the end of November, it was 0.45–0.6 UAH/USD.
Key influencing factors
Forecast
Euro exchange rate: dynamics and analysis
General characteristics of market behaviour
The euro exchange rate on the Ukrainian market strengthened gradually in November: over two weeks, the official euro exchange rate shifted from UAH 48.51/EUR to UAH 48.87/EUR. The fluctuations were mild and did not cause panic reactions either on the interbank or cash markets.
Key observations
Ø Exchange rate geometry:
o The euro selling rate at the beginning of November was around 48.52 UAH/EUR. In the second ten days of the month, there was a clear trend towards the strengthening of the euro, with the exchange rate reaching 48.91 UAH/EUR on 25 November, followed by a slight pullback to 48.87 UAH/EUR.
Ø Supply and demand:
o Demand for cash euros remains fairly high, but is losing out to demand for US dollars due to more active fluctuations and the weak predictability of the euro’s trajectory.
o The spread between the buying and selling rates of the euro on the cash market remains high: 0.6–1 UAH/EUR in large banks.
Key influencing factors
Forecast
Recommendations: dollar or euro — buy, sell or wait?
USD/UAH
The US dollar is under pressure from economic activity data and ahead of the Fed Committee meeting. According to new data, economic activity in the US has remained virtually unchanged in recent weeks, although employment has been weaker in about half of the 12 Fed districts and consumer spending has declined, heightening concerns about the labour market. The US is also experiencing a freeze on new hiring and is only recruiting new staff to replace those who have left. This situation in the labour market is motivating the Fed to take further steps to ease monetary policy, and interest rate futures markets are already reflecting a high probability of another 0.25% cut in borrowing costs at the Fed meeting on 9-10 December.
In December, the dollar may strengthen if it is supported by new statistical data and in the absence of new risk factors. The dollar is likely to trade in the 1.1470–1.1680 range.
However, for investors, the dollar remains an important haven for solid savings, so investors should consider purchasing the American currency for various strategies.
In Ukraine, the dollar will only strengthen, and dollar savings will continue to serve as a solid basis for currency strategy, both in the short and medium to long term.
EUR/UAH
The euro is actively strengthening on the Ukrainian market, although short-term exchange rate rollbacks are likely, but the overall trend is for the euro to appreciate against the backdrop of a gradual strategy of weakening the hryvnia. The euro in the portfolio will help diversify part of the currency savings, as well as carry out short-term speculative transactions during periods of rapid peak exchange rate changes. There are no strategic reasons to get rid of the euro from portfolios. This means continuing to buy, although it is possible to exit some euro investments if this is part of the investor’s updated strategy.
Overall strategy
Expectations of a Fed rate cut in December and data on the rather unstable state of the US labour market are affecting the global currency market and leading to a fall in the US dollar. The euro is strengthening thanks to the absence of sharp changes in the ECB’s monetary policy and data on inflation and economic development in the eurozone.
In the medium term, investors would be wise to focus on the dollar as the base currency for savings, while holding on to the euro for a likely short position, when it will be possible to exit investments with maximum profit due to sharp exchange rate fluctuations. The forecast strengthening of the euro due to the unstable situation in the US and the Fed’s policy may provide additional incentives to buy the euro within the framework of a medium-term investment programme.
In Ukraine, further devaluation of the national currency is expected, which will increase demand for dollars and euros on the cash market. Demand for currency is also being driven by expectations of a difficult winter and further large-scale shelling of major cities and energy facilities by the aggressor. The weakening of the hryvnia gives investors room to form their savings strategy in foreign currencies, with the dollar and euro as the base currencies. A well-thought-out and cautious investment strategy will allow you to form a stable and profitable currency portfolio that is protected from the risks of exchange rate volatility.
This material has been prepared by analysts at the international multi-service FinTech platform KYT Group and reflects their expert, analytical and professional judgement. The information presented in this review is for informational purposes only and should not be construed as a recommendation for action.
The company and its analysts make no representations and assume no responsibility for any consequences arising from the use of this information. All information is provided ‘as is’ without any additional guarantees of completeness, obligations of timeliness or updating or supplementation.
Users of this material should independently assess the risks and make informed decisions based on their own assessment and analysis of the situation from various available sources that they themselves consider sufficiently qualified. Before making any investment decisions, we recommend consulting with an independent financial advisor.
REFERENCE
KYT Group is an international multi-service FinTech marketplace platform that provides financial companies with access to services for promoting their services, as well as advertising and consulting services.
Issue No. 1 – November 2025
The purpose of this review is to provide an analysis of the current situation in the Ukrainian currency market and forecast the hryvnia exchange rate against key currencies based on the latest data. We analyze current conditions, market dynamics, key influencing factors, and likely scenarios.
Analysis of the current situation on the currency market
International context
The global FX market was influenced by several important factors in the first half of November. The first was the October Fed rate cut by 25 basis points to the range of 3.75-4%. The second was the expectation of fresh statistics on the US labor market and the resumption of the US government’s work. In addition, investors and currency fluctuations in the EUR/USD pair were influenced by expectations of the next step of the Fed Committee – another key rate cut is expected in December.
While the rate cut at the end of October had already been factored into exchange rate fluctuations, labor market data worried investors. And, as it turned out, for good reason. At a briefing on October 29, Fed Chairman Jerome Powell said that conditions in the US labor market were cooling. In November, this was also confirmed by statistics: according to ADP, American companies cut more than 11,000 jobs every week until the end of October, indicating a weakening labor market. Although preliminary data showed that in October, a total of 42 thousand new jobs were created in the United States compared to September, ADP noted that in the second half of October, the labor market had difficulty creating jobs. This leads analysts and traders to believe that the Fed will have to make another key policy rate cut in December.
The above factors influenced the dollar’s exchange rate behavior, which in the first half of November initially gained ground on positive expectations and reached 1.1473 on November 5, but then began to pull back towards a weaker dollar, and as of November 14, the rate actually returned to the level it was at on the eve of the Fed Committee meeting in October – 1.1625. New labor market statistics, negative expectations of further market cooling due to government layoffs, and the forecast of further Fed rate cuts played against the dollar.
Another factor influencing the currency market is the US-China relationship, but it is not stressful yet. On November 10, China announced that it was fulfilling its promise to combat chemicals that can be used to produce fentanyl, which was a key issue for US President Donald Trump during his talks with Chinese leader Xi Jinping in October. China has already announced new restrictions on the export of 13 chemicals to the United States, Canada, and Mexico. Improved relations between the US and China will definitely have a positive impact on the US dollar.
Meanwhile, in mid-November, the euro demonstrated a strengthening, in part due to the conservative policy of the European Central Bank, which left rates unchanged at the end of October, stating that inflation in the eurozone remained under control. All three key interest rates were kept at the same level. According to the ECB, inflation in the euro area remains close to the medium-term target of 2%. The ECB Governing Council’s overall assessment of the inflation outlook has not changed. However, the EU is talking about global challenges and uncertainty due to tariffs and geopolitical tensions. These factors remain the main risks to the euro area economy at the end of 2025.
Domestic Ukrainian context
In early November, exchange rate fluctuations were noticeable in the Ukrainian currency market, with the trend of devaluation of the national currency continuing. However, the National Bank of Ukraine’s participation in interventions has a stabilizing effect. Since the beginning of November, the hryvnia has been gradually weakening against the dollar: as of November 1, the official exchange rate was at UAH 41.97 per dollar, and as of November 14, it was at UAH 42.06 per dollar. There are also fluctuations in the cash market, but they are rather insignificant: in mid-November, the average selling rate was 42.30 UAH/USD, while at the beginning of the month it was 42.14 UAH/USD.
Demand for foreign currency continues to be high. Demand growth was also recorded in October. According to the NBU, this applied to both the interbank foreign exchange market and the cash segment. In total, last month the NBU increased its interventions in the interbank market by 27.3% or USD 625.3 million to USD 2.915 billion. According to the regulator, in October the population purchased $162 million more in cash than in September, bringing the total amount of foreign currency purchases to $1.458 billion.
If we analyze the net purchase of foreign currency by households, the amount in October is twice as much as in September – $0.75 billion last month versus $0.38 billion in September. This trend is quite expected. It is likely to continue in November, as the domestic situation in the country remains tense due to regular attacks by the Russian Federation, and the schedules of power outages caused by enemy attacks add to the need to purchase imported equipment, which may put pressure on the demand for foreign currency on the interbank market, and to the formation of household savings, which is reflected in the cash segment.
In the challenging conditions of the new heating season, when the energy sector is under the aggressor’s sights, Ukraine needs additional funds, which should also support macrofinancial stability. The government has announced good news in this regard. We are talking about EUR 5.9 billion from the European Union: EUR 4.1 billion came under the ERA Loans mechanism, the last tranche of the EUR 18 billion program financed from the proceeds of frozen Russian assets. Ukraine received another EUR 1.8 billion under the Ukraine Facility program.
As for the NBU’s reserves, Ukraine’s international reserves amounted to USD 49.516 billion at the beginning of November, and they grew by 6.4% in October. The growth was primarily driven by new inflows from international partners, which exceeded the NBU’s net sales of foreign currency and the country’s foreign currency debt payments. Thus, the situation with reserves does not raise any questions at the moment, and the NBU has enough funds to support the foreign exchange market for a long time and to intervene to smooth out exchange rate fluctuations.
US dollar exchange rate: dynamics and analysis
General characteristics of market behavior
November’s fluctuations in the Ukrainian currency market have been slow: the US dollar has been strengthening, but without sharp movements and under the control of the NBU.
Over the past two weeks, the exchange rate has changed as follows: the average buying rate has increased from 41.61 UAH/$ to 41.8 UAH/$, the selling rate from 42.19 UAH/$ to 42.25 UAH/$, and the official NBU rate from 41.97 UAH/$ to 42.06 UAH/$.
In the first half of November, the buying rate was in the range of UAH 41.66-41.82/$ on the cash market (weighted average rate), and the selling rate was in the range of UAH 42.05-42.2/$. The spread between the buying and selling rates is gradually increasing at the banks’ cash desks: in large retail banks, it amounted to UAH 0.5-0.6 per dollar in mid-November.
Key factors of influence
Forecast.
Euro exchange rate: dynamics and analysis
General characteristics of market behavior
The euro grew steadily stronger on the Ukrainian market in the first half of November: within two weeks, the official euro exchange rate moved from 48.51 UAH/€ to 48.65 UAH/€.
Key observations
Ø Exchange rate geometry:
o The euro’s selling rate in the first week of November remained almost unchanged, hovering around 48.52 UAH/€. However, after November 10, a trend toward a stronger euro was clearly evident.
o The euro’s buying rate continues to move in the opposite direction to the selling rate, and the spread between bank rates is growing, reaching UAH 0.9-1 per euro as of mid-November.
Ø Supply and demand:
o The demand for cash euros is growing in parallel with the growth in demand for the dollar: according to the NBU, purchases of cash euros by households in October increased by 202.9 million to USD 724.6 million in dollar terms, while sales decreased by 6.1 million to the equivalent of USD 314.1 million.
o The continued growth of the spread between buying and selling euros gives financial institutions the opportunity to hedge against a possible sharp change in the trajectory of the euro, which is characterized by high volatility in both the international and Ukrainian markets.
Key factors of influence
Forecast.
Recommendations: dollar or euro – buy, sell, or wait?
USD/UAH
The strengthening of the dollar, which the markets have been anticipating due to the Fed’s transparent policy and optimistic expectations for the US economy, is gradually giving way to some disappointment as fresh statistics are released. Even the easing of tariff tensions does not help the dollar, which, after a short-term jump to 1.1479 in early November, returned to 1.1630 in the middle of the month.
Despite global skepticism about further dollar gains, the dollar will remain the main currency in the savings structure for investors, which means that dollar purchases continue to be part of both long-term and short-term investment strategies.
Since Ukraine has a strong devaluation trend, dollar savings will serve as the basis for future decisions by investors to exit some dollar investments with a clear profit. However, this is a long-term strategy, and possible short-term depreciation of the dollar to the level of 41.79-41.91 UAH/$ will serve as a signal for the next tranche of purchases of the US currency.
EUR/UAH
Like the dollar, the euro is showing a tendency to strengthen on the Ukrainian market. Traditionally, however, the level of volatility of the euro, coupled with high spreads, does not allow one to count on stable, calculated investment income. However, in order to diversify part of their savings, investors can focus on a plan that includes buying tranches of euros at times of a clear depreciation. It is advisable to keep euros in the portfolio, but not more than 35% of all savings in foreign currencies. November is the time to buy euros, not sell them.
Overall strategy
Expectations of a Fed key rate cut and the latest US labor market data are contributing to a weaker US currency. Meanwhile, the ECB’s conservative stance and the EU’s hopes for an acceleration in the eurozone’s economic development are significantly supporting the euro.
In the near future, investors should choose the dollar as their savings base, but not ignore the euro, which, against the backdrop of the Fed’s policy and the lack of positive signals about the revitalization of the US labor market, may well be part of a profitable investment strategy.
In November, expectations of further hryvnia depreciation prevail, allowing investors to plan both a medium- and long-term strategy to strengthen their foreign currency savings. The main rule: no sudden movements, but steadily. The dollar is an important underlying asset that forms a reliable, low-risk portfolio. The euro is an opportunity to play on exchange rate fluctuations over the next 3-4 months. Both currencies are currently advisable to buy for different investment strategies, carefully analyzing exchange rate movements and understanding the likely forecast exchange rate fluctuations.
This material has been prepared by analysts of the international multiservice FinTech product platform KYT Group and reflects their expert, analytical professional judgment. The information presented in this review is for informational purposes only and cannot be considered as a recommendation for action.
The Company and its analysts make no representations and assume no liability for any consequences arising from the use of this information. All information is provided “as is” without any additional warranties of completeness, obligations of timeliness or to update or supplement.
Users of this material should make their own risk assessment and informed decisions based on their own evaluation and analysis of the situation from various available sources that they consider to be sufficiently qualified. We recommend that you consult an independent financial advisor before making any investment decisions.
REFERENCE
KYT Group is an international multi-service marketplace FinTech product platform that provides financial companies with access to services for promoting their services, as well as advertising and consulting services.
Issue #2 – October 2025
The purpose of this review is to provide an analysis of the current situation on the Ukrainian currency market and a forecast of the hryvnia exchange rate against key currencies based on the latest data. We analyze current conditions, market dynamics, key influencing factors, and likely scenarios.
Analysis of the current situation on the currency market
International context
The second half of October was influenced by expectations of the next decision by the Federal Reserve Committee on the key policy rate. The previous 25 basis points cut in September was a result of the strategy to achieve 2% inflation. Then in September, the Fed began a cycle of easing, and at the October 29 meeting of the Committee, it decided to cut the key policy rate by 25 basis points to the range of 3.75-4%. As Fed Chairman Jerome Powell said at a briefing on October 29, the outlook for employment and inflation has not changed much since the September meeting, with labor market conditions deteriorating and inflation remaining slightly elevated.
Thus, the US economic outlook is somewhat worrisome for investors. However, optimism in the markets increased in late October, mainly due to messages from President Donald Trump regarding further cooperation with China. On October 29, Donald Trump said at the Asia-Pacific Economic Cooperation summit in South Korea that he believed the United States would “make a deal” with China and that it would be a “good deal for both sides.” Trump and Xi Jinping met on October 30. As a result, the US president said that the parties had agreed to reduce overall duties on Chinese goods from 57% to 47%, and China promised to continue exporting rare earth metals.
In general, the dollar strengthened against the euro in October on the back of the expected decision of the Fed Committee on the key rate and the plans announced by the White House for a meeting between Donald Trump and Chinese President Xi Jinping. So it’s no surprise that on October 29, the EUR/USD rate held at 1.1630. This is actually an echo of positive market sentiment, driven by the Fed’s policy easing and the expectation of an agreement between China and the United States. However, some pullback in the direction of a fall in the dollar remains possible in the near future, as the deteriorating situation in the US labor market may play against the dollar.
Meanwhile, in the EU, investors expect the European Central Bank (ECB) to keep interest rates stable at its meeting on Thursday, October 30. Later, the ECB will release preliminary GDP data for the third quarter and inflation data for October, but it seems that there are no surprises from the ECB, and the rate will remain at 2%.
In general, the picture for the EU is quite stable, although there are some reservations about further economic growth in the eurozone, in particular in 2026, amid new US tariffs on imports from Europe. The euro is also influenced by expectations about the development of trade relations between the US and China, and the actual outcome of negotiations between the two countries may contribute to some increase in the volatility of the EUR/USD pair.
In Ukraine, the dollar strengthened faster in late October than in global markets, where the EUR/USD exchange rate has shown a strengthening of the dollar from 1.1685 to 1.1630 since the beginning of October. It is worth noting that the scenario of a change in the Fed’s key policy rate has already been priced into the international market, so this aspect will have the least impact on exchange rate fluctuations in the near future.
Domestic Ukrainian context
In October, the Ukrainian foreign exchange market saw a trend of devaluation of the national currency. Since the beginning of October, the hryvnia has been steadily weakening against the dollar: as of October 29, the official exchange rate reached 42.08 UAH/USD, while on October 1, the rate was 41.14 UAH/USD. Thus, the hryvnia has lost 2.28% in almost a month. The exchange rate on the cash market is also changing accordingly, with the average exchange rate in banks as of October 29 at UAH 42.25 per dollar.
Demand for foreign currency on the interbank foreign exchange market is growing, but the National Bank is in no hurry to increase interventions. In fact, we can state that the devaluation is being managed and is being carried out under the strict control of the NBU.
In October, Bloomberg reported on the IMF’s position on the hryvnia exchange rate. The publication said that the Fund was putting pressure on the National Bank to conduct a controlled devaluation of the hryvnia. The IMF believes that devaluation will be a way to strengthen the financing of the state budget, but the NBU disagrees because of the high risks of inflation. Devaluation is indeed partially justified by the possibility of converting funds received from Ukraine’s creditors and partners at a better rate, increasing the volume of state treasury revenues. However, a sharp devaluation would be a rather risky decision. At the moment, we are talking about a gradual weakening of the hryvnia exchange rate, which is fully controlled by the NBU.
In our opinion, the exchange rate fluctuations in October were influenced by three main factors: the strengthening of the dollar in global markets, increased demand for foreign currency from importers, including energy goods and equipment, and the need to be guided by the exchange rate parameters set in the draft new state budget for 2026. As a reminder, the document refers to an average annual hryvnia exchange rate of UAH 45.7 per dollar.
An important trend in October was a marked increase in demand for cash foreign currency from the population. There was also a noticeable increase in demand for dollars in September, when net purchases of foreign currency by households reached $382.7 million. The official figures for October are likely to be higher than those for September. Banks have noted an increased demand for non-cash purchases of foreign currency, which is also an important sign of expectations of further hryvnia devaluation.
The most important factors influencing exchange rate volatility are the war and news from the frontline, shelling of energy infrastructure, and the passage of the psychological mark of the exchange rate – the level in the cash market of more than UAH 42 per dollar.
The National Bank of Ukraine will act cautiously, traditionally adhering to its position of smoothing out significant market fluctuations and trying to maintain a certain balance in the interbank market. The main factors that will influence exchange rate changes are the balance of supply and demand in the market, the NBU’s readiness to intervene, and the rhythmic flow of international aid. It is also important to know what the new arrangements with the IMF will be like, as it is known that IMF Managing Director Kristalina Georgieva plans to visit Ukraine to discuss a new loan package, which may amount to (but has not yet been officially confirmed) $8 billion.
US dollar exchange rate: dynamics and analysis
General characteristics of market behavior
In October, the dollar experienced slight fluctuations in the international market, and the US currency continued to strengthen in the Ukrainian market.
During the month, the exchange rate gradually went up: the average buying rate rose from UAH 41.01 to UAH 41.8, the selling rate from UAH 41.52 to UAH 42.25, and the official NBU rate from UAH 41.14 to UAH 42.08. The dollar is strengthening smoothly and steadily.
In October, the buying rate was in the range of UAH 41.0-41.77/$ on the cash market (weighted average rate), and the selling rate was in the range of UAH 41.38-42.15/$. At bank cash desks, the spread between the buying and selling rates grew throughout the month and in large retail banks amounted to UAH 0.45-0.6 per dollar at the end of October.
Key factors of influence
Forecast.
Euro exchange rate: dynamics and analysis
General characteristics of market behavior
In October, the euro on the Ukrainian market moved toward appreciation in line with the domestic trend of hryvnia devaluation, taking into account the situation on global markets. While on October 1, the official euro exchange rate was at 48.3 UAH/€, on October 29 it was 48.98 UAH/€.
Key observations
Ø Exchange rate geometry:
o The euro selling rate in Ukraine moved in different directions in October, but after October 21, it took a steady upward course.
o The buying rate continues to move actively away from the selling rate, with the spread between the rates in banks growing and at the end of October in the range of UAH 0.8-1 per EUR.
Ø Supply and demand:
o Demand for cash euros in Ukraine initially fell during October, but after the trend of hryvnia devaluation became clearer in the second half of the month, demand in the cash segment increased significantly.
o The spread between buying and selling euros, which is significantly different from the spread in the dollar segment, continues to grow, which indicates that banks and financial institutions are not confident in the stability of this currency: a high spread is always a payment for risk and high volatility.
Key influencing factors
Forecast.
Recommendations: dollar or euro – buy, sell, or wait?
USD/UAH
The strengthening of the dollar in the fall of 2025 was driven by optimism about the start of a new phase of trade discussions between the US and China, as well as by the levels of fluctuations that the markets had already set in advance due to the next stage of monetary policy easing in the US.
The dollar will now play a major role in the structure of savings, and it is advisable to continue buying it in tranches from time to time. However, for short-term gains, a partial exit from the dollar is also possible after a thorough analysis of the investment strategy.
Further strengthening of the dollar and a clear devaluation trend provide opportunities to generate a return on dollar investments. However, globally, in an unstable hryvnia environment, such an exit should be accompanied by additional security measures, such as strong capital preservation strategies and further hryvnia investments in liquid assets. For a medium-term strategy, it is advisable to keep the dollar as the basis of the currency portfolio.
EUR/UAH
The euro is showing an upward trend in the Ukrainian market, and the high level of fluctuations does not allow for a full assessment of future dividends from the purchase of assets in euros. In the medium term, the euro will strengthen against the US dollar. It is advisable for investors to hold 20-30% of their portfolios in euros, given the need to diversify their savings.
It is not advisable to sell the euro at current levels, as the projected growth potential shows levels above UAH 50/€ in the coming months. The euro can be a base currency for speculative transactions due to the high spread and more active exchange rate dynamics.
Overall strategy
The Fed’s key policy rate cut and the latest US labor market data may lead to a weaker dollar. In the long run, the dollar will be supported by new agreements between the US and China, as they currently indicate a de-escalation of relations between the two countries. The euro will be supported by the ECB’s data on inflation and GDP growth in its member states.
Investors should choose the dollar as their savings base for the near future, but regularly review their portfolio for diversification and the presence of other liquid currencies. The euro can be an important part of a portfolio, especially given the unstable situation in the United States and investors’ uncertainty about further economic growth, as well as President Donald Trump’s mixed statements that could provoke market outbursts.
There is a clear trend of hryvnia devaluation in the Ukrainian market, which gives investors good reason to invest in the dollar as a base currency and the euro as a currency for diversification and possible short-term and speculative transactions. A good strategy is to preserve savings by entering the dollar and increase the possibility of profitable earnings on exchange rate fluctuations in the euro. Given the high chances of the dollar strengthening in the Ukrainian market, the US dollar will remain the main means of preserving and increasing foreign currency investments in the long term.
This material has been prepared by analysts of the international multiservice product FinTech platform KYT Group and reflects their expert, analytical professional judgment. The information presented in this review is for informational purposes only and cannot be considered as a recommendation for action.
The Company and its analysts make no representations and assume no liability for any consequences arising from the use of this information. All information is provided “as is” without any additional warranties of completeness, obligations of timeliness or to update or supplement.
Users of this material should make their own risk assessment and informed decisions based on their own evaluation and analysis of the situation from various available sources that they consider to be sufficiently qualified. We recommend that you consult an independent financial advisor before making any investment decisions.
REFERENCE
KYT Group is an international multi-service marketplace FinTech product platform that provides financial companies with access to services for promoting their services, as well as advertising and consulting services.
Liberty Finance Financial Company LLC (hereinafter referred to as Liberty Finance) has successfully completed the placement process and registered a report on the results of the company’s first ever bond issue.
The National Securities and Stock Market Commission (NSSMC) registered the report on the results of the issue of registered corporate discount bonds of series A. This decision is the final confirmation of the successful placement of securities among a pre-determined group of investors.
Liberty Finance has become one of the few financial companies on the market to take such a step, confirming its high level of capitalization, financial stability, and the trust of regulators.
“The successful placement of our first bond issue is a landmark event for Liberty Finance and a reflection of our reliability. To conduct the issue, the company underwent a thorough audit and confirmed to the Securities Commission that it has sufficient capitalization and financial standing. The NSSMC granted permission for the placement, recognizing us as a reliable issuer. This demonstrates the transparency of our activities and compliance with high regulatory standards,” the company said.
The issue is closed. The bonds were placed among a limited list of specified investors. They were issued with a par value of UAH 1,000 and a maturity date in 2028.
“The funds raised will be used to ensure the company’s successful operation. We are a systematic profitable business with decent capitalization, which allows us to ensure the repayment of all obligations on the issued securities. Our activities are fully compliant with the regulations of the National Bank of Ukraine, which exercises constant control, and the Commission has twice verified our reliability during the issuance process, which provides our investors with additional guarantees,” Liberty Finance said.
The successful issuance of Liberty Finance bonds is an important step in the company’s financial development and confirmation of its stability in the Ukrainian market.
Liberty Finance is one of the largest licensed operators in the currency exchange market. Its authorized capital is UAH 25 million, and its equity capital exceeded UAH 188 million at the beginning of 2025. According to the NBU, the company is one of the largest taxpayers in its segment.
