You're reading: Bloomberg Businessweek: Ukraine’s hryvnia drops to Two-Year Low on Europe crisis concern

The hryvnia depreciated for a seventh day against the dollar, poised for its longest losing streak since December 2008, on speculation uncertainty about Europe’s debt crisis is damping demand for the country’s debt.

The Ukrainian currency lost 0.7 percent to 8.11 per dollar as of 10:46 a.m. in the capital, Kiev, heading for the weakest closing level since February 2010. The former Soviet republic’s $1 billion of dollar-denominated debt due November 2016 fell for the first time in three days, increasing the yield by three basis points, or 0.03 percentage point, to 9.47 percent.

European leaders are meeting in Brussels today to discuss the region’s debt crisis that has wiped more than $4 trillion from equity markets worldwide this month. The yield spread on Ukrainian bonds over the emerging-market average has jumped 10 basis points this month to 466 basis points.

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