Us dollar gets stronger as ukraine gets bailout

Photo: Coultart

The currency grew against its rivals, with news that unemployment fell in April 2014 and that payrolls increased. The positive data contributes to improving sentiment across the US, as unemployment reaches a a near-five-year low.

At the same time, the pound weakened slightly amid negative construction figures. Both currencies, though, are performing better than Ukraine's hryvnia. The country's currency has plummeted to historic lows against the US dollar since the crisis with Russia began to unfold.

Now, in an attempt to shore up the economy and stabilise a key player in the energy sector, the IMF has authorised a $17 billion bailout for the country.

The IMF's deal with Ukraine required the country to make a string of economic reforms to help reduce its own deficit, including raising energy prices and taxes. The country already raised its gas prices by 50 per cent to help cement the agreement.

"Today's final approval for the $17bn IMF programme marks a crucial milestone for Ukraine," US Treasury Secretary Jacob Lew said in a statement.

The move is hoped to turn around Ukraine's weak economy, thereby helping to minimise any impact upon the euro or other currencies.