Dollar exchange rate of 70 rubles by December is already a reality
Alexei Kudrin, speaking at a meeting of the state Duma Committee on financial markets, suggested that the real incomes of the population in the current year “will be zero or even negative”. The head of audit Chamber considers that, in 2019, improvements should be expected. The devaluation of the ruble, runaway inflation and tax increases will do the trick.
We get the feeling that Alexei Kudrin is now almost the only sane politician in the country. He really and soberly assesses the current economic situation. At the same time, all the others sing praises about the economic recovery, rising incomes and other economic indicators.
Meanwhile, the US Federal reserve kept its key rate unchanged. FOMC members reaffirmed their plans for further gradual increase in rates. Likely to increase in December. The market is now a probability of more than 75%.
Against this background, the U.S. currency began to grow in the international currency market Forex. We see the strengthening of the greenback against the ruble. At the auction of the Moscow exchange on Friday for the dollar to 67 rubles, Euro traded at the level of 75 rubles and 90 kopecks. The MICEX index dropped to 2415 points, and quotes of Brent crude oil dipped to 70 dollars 50 cents. Bitcoins according to CoinMarketCap dropped to 6400 dollars.
The devaluation of the Russian currency is more rapid than we expected. Earlier, we have repeatedly advocated the idea of buying the U.S. currency in the range from 65 to 66 rubles per dollar. The goals we outlined – levels 67 – 68, the first has already been achieved. Given the current situation on the Russian stock market, on foreign exchanges, as well as in the oil market, it is expected that soon we will see the strengthening of the us dollar to 68 rubles. Until the end of the year it may rise to 70 rubles.
The head of the analytical Department of the company,