Speculative demand has limited the fall of the ruble

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After the weakening of the Russian currency on the eve konsolidiruyutsya with a slight downside bias on Tuesday. The recovery in oil prices coupled with predominant sales of the dollar on the international Forex market at this stage act as limiting factors to the bearish potential of the ruble.
The bigger picture speaks of the restraint of the fluctuations of the “Russians”.
So, the ruble is modestly responded to yesterday’s collapse of oil prices and relatively endures the death tax period. The demand of foreign speculators in the ruble assets weakened slightly, but remains good, despite the conflict between Russia and the West. The differential in rates continues to attract interest to the ruble, even in the face of political turbulence.
Locally our currency supported the rebound of oil prices from the lows after the recent aggressive sales. On the market of black gold, where prices are near multiyear highs, is now the prevailing tense situation. Traders are afraid to push the asset to new heights, and in any case profit-taking with the appearance of appropriate prepositions. So the impact of the oil factor for the ruble in the foreseeable future will remain ambiguous.
In General, large shocks to the ruble in the near future is not expected. From the more aggressive drawdown in the event of an escalation of the diplomatic conflict currency could cut the weak dollar, which market participants do not find attractive in terms of trade war, started by trump.
Roman Blinov,
Head of analytical Department,
“International financial center”