The ruble continues to show severe weakness amid the dollar growth
The ruble began trading Tuesday with a new round of easing after some stabilization at the beginning of the week. The dollar exploded to highs near the mark of 67 rubles., which is eyeing the second half of August. Since the beginning of the day, the pair is increased by 0.10%, but has not yet decided to storm the psychological level.
First of all, the pressure on our currency have a strong positions of dollar on Forex where the Euro and pound are under pressure from the dollar bulls renew long-term lows.
Not pleased with the overall attitude of investors to risk, due to disturbing expectation of the resumption of trade negotiations, the resumption of the decline in the yields of global bonds and another depreciation of the yuan to historic lows. From the oil market, the ruble is also not getting support. Brent is developing a bearish momentum on the third day in a row, testing the level of 8 dollars per barrel.
Judging by the current dynamics of our currency, the breakdown of the level of 67 rubles – it’s just a matter of time. Sentiment on global platforms remain volatile, which further fuels the demand for “American” as a protective asset. The oil market is disappointed with the build-up OPEC production in August, which is superimposed on the record levels of shale oil production in the United States. And at the end of the week coming next rate reduction by the Bank of Russia, which will not add to the attractiveness of domestic assets, including the ruble.
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