Sanctions against Iran gave the ruble a temporary respite

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On Tuesday, the dollar rose against most currencies, as global traders suddenly switched from routine technical analysis of the all-powerful geopolitics and were forced to follow the developments around the sanctions against Iran by the US (position “risk-off”). The return of sanctions, among other things, makes it difficult for Iran to trade in gold and other precious metals as well as aluminum and steel. The US is also trying to block the purchase of dollar banknotes to the Iranian government for the purpose of payment of essential imports “by cash”.
Sanctions also hurt industry sales of automotive and aviation equipment. However, these limitations pale in comparison to upcoming sanctions on Iranian oil and shipping sectors, which, if nothing changes, will come into force on 5 November.
On Monday night, Iranian President Hassan Rouhani, apparently without any reference to the announced the administration’s trump publicly made in the address of the President of the United States, saying that the Islamic Republic would welcome talks with the United States “right now”, without preconditions. Recall that last week, the same call was made by himself and Donald trump – but, apparently, without waiting for some few hours they decided to operate. Oil though not demonstrated appropriate in such cases a sharp rebound, but almost immediately began to show steady growth, which has intensified this morning.
As of 12:45 Moscow time the barrel of Brent is trading at the level of $74,40, which allowed the ruble to start from very dangerous from the point of view of strengthening the “bear” trend of the level of 64 to the dollar and to settle near the level 63,45. This is a very modest strengthening of the domestic currency allows you to speak only in terms of favorable/unfavorable market conditions, but, alas, no way of restoring mutual correlation with “black gold”.
Meanwhile, at the front, trade wars are also still hot. As of Monday evening, August 6, Beijing published a list of American goods by $60 billion, which will be applied import tariffs in response to the introduction of Washington extra duties on Chinese goods worth $200 billion, showing that neither side in a trade war is not ready to retreat.
Recall that in July, the US and China have already exchanged tariff “pleasantries” for goods worth $34 billion and had planned to add to their lists the goods to $16 billion, including steel, aluminum, washing machines and agricultural products. In the short term, the United States intends to impose a 25% tariff on Chinese goods worth $34 billion have already been to the current on Friday, while China quickly retorted that he would without hesitation to refund the fees for the same cost imported from USA products.
Meanwhile, the Chinese yuan continues soft devaluation. Early in the morning GMT the Chinese currency is headed for the level 7 to the dollar, and only profit-taking, currency speculators were able to slow down its close of 6.90 to the dollar, and then opened trading in Europe, and left without their regional patrons, the yuan barely noticeable corrected. Chinese state media said that the recent sell-off in stock markets in China were “irrational overreaction of non-residents” calling for domestic investors not to panic over growing trade tensions between China and the United States.
Vladimir Rojankovski,
“International financial center”