The growth prospects of the ruble under sanctions pressure
As we predicted the day before, the participants of the market was not yet ready to go beyond established trading ranges of currency pairs with the Euro. The single currency managed to strengthen its positions against the dollar and the ruble. Yesterday, the pair EURRUB rather abruptly turned to growth in the second half of the day from 73.90 levels and at some point reached 74.93.
On Wednesday morning, the ruble is more militant, supported by the global growth of demand for risky assets. As a result, Russian currency regains 33 cent for the Euro, while at 74.34, and 18 cents the dollar, trading at 65.72.
Global stock markets celebrated an impressive growth of about 1.5% in key indexes. More than two percent adds oil. Brent is once again trading near $63, returning to the area of the highs of the last three months.
However, the Russian market could not fully replicate the dynamics of foreign markets, in light of the return of the sanctions rhetoric: Mosberg index and RTS index lost about 0.5%.
Caution investors in relation to Russian assets capable of during the day not only to keep the ruble, but also the cause of its weakening.
As we wrote yesterday, the recent rally of the ruble has largely exhausted its growth potential. For the reduction development will require strong and significant positive and on the horizon – just the opposite, the clouds are gathering.