Ukraine short-term interest rates jump

LONDON Mon Dec 9, 2013 4:33am EST

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LONDON Dec 9 (Reuters) - Short-term Ukrainian interest rates jumped to one-year highs on Monday as pressure mounted on the hryvnia currency following political unrest.

Ukrainian foreign exchange reserves fell sharply in November, data showed on Friday, as the central bank sold dollars to support the hryvnia.

"This has happened in the past when political and economic noise picks up - it is an indication of tighter liquidity in the market," said Simon Quijano-Evans, head of emerging markets research in Commerzbank.

Anti-government protesters toppled a statue of Soviet state founder Vladimir Lenin in Kiev on Sunday and hundreds of thousands of people demonstrated in the Ukrainian capital's Independence Square after the government decided last month to ditch a landmark pact with the European Union in favour of closer cooperation with Moscow.

One-week, one-month and three-month money market rates soared to their highest in a year. One-week rates rose to 16 percent, according to Reuters data, up from 7 percent on Friday, and 3.5 percent a week ago. (Reporting by Carolyn Cohn and Sujata Rao; Editing by Janet Lawrence)

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