The dollar puts pressure on the Russian currency, but so far without success
The ruble began the auction on Saturday a small rise, taking advantage of the lack of news from the outside. Currency ends the week lower against most major currencies, but remained at a distance from the lows reached earlier this month. Given the strength of the bullish dollar in the international market Forex, our currency is relatively stable.
On the eve of the pressure on the ruble weakened after reports that Oleg Deripaska may give up control of “RUSAL”, and so there’s a chance that Washington will lift the sanctions against the Russian giant. Also some support for “the Russian” had the decision of the Bank of Russia, although the verdict was expected. The regulator has left rates unchanged and indicated the reduction potential of reducing the cost of lending for the formation of neutral monetary conditions.
However, in the broader perspective of the position of the ruble remains vulnerable. First, despite the easing of the sanctions rhetoric of the West, risks on this front remain, and a significant warming of relations between the parties not yet in sight. Second, it increases the likelihood of more active monetary policy, the fed amid rising inflation expectations and improving economic indicators.
Hence, the third factor – the rise in the dollar, which can be developed in the upcoming week if the meeting is on Wednesday, the fed might hint at a willingness to further normalize monetary policy and “praise” the country’s economy.
Head of analytical Department,
“International financial center”