Dollar rises on strong positions the fed to raise rates
The growth of the ruble came again to the strengthening of the American currency. After Wednesday, the USD / RUB pair gained 19 cents, rising to 65.50, while EURRUB decreased by 33 pennies to 75.29. As for the dual currency basket, it lost 4 cents, and this was the fifth consecutive day of decline.
The strengthening of the dollar caused by the preservation of the strong position of the fed on further monetary tightening that may result in the return of those factors that frightened the emerging markets in August-September.
The unanimous feeling of the members of the FOMC to further “tightening the screws” are able to launch a new wave of dollar growth, followed by increased interest rates on the debt markets of the United States. In turn, higher interest rates on American debt securities provoke capital outflow from markets of developing countries.
This morning all of the key currencies of major emerging economies came under pressure. So, the Chinese yuan has returned to the levels close to 6.94 per dollar, close to lows that the currency has reached since January of 2017. Reduce is not possible to avoid even the Turkish Lira. USDRTY is growing for the first time in two weeks, despite the cessation of geopolitical tensions after the liberation by the Turkish court of American pastors. South African Rand and Mexican peso lose the second day in a row, followed by recovery of demand for dollars.
Oil is also under pressure. Yesterday, the quotations of Brent crude fell to lows of 4 weeks and was below $80 per barrel. The pressure intensified after new portion of news about considerable growth of stocks of crude oil in the United States, and a softening of rhetoric trump against Saudi Arabia. It seems, at this point managed to avoid aggravation.
Thus, the ruble just left external factors that is likely to be today to put pressure on the quotes. It is important to note: chances are high that the pressure (albeit very moderate) in the coming days will only increase as the markets will re-play the hawkish tone of the fed and the easing of geopolitical tensions.