The ruble could not resist from falling

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After a morning attempt to return to growth, the ruble sharply turned and suffered considerable losses, sending the dollar to 1-month low, influenced the escalation of tensions between Russia and the West. Touching the mark 57,44 RUB, the us dollar finished near the maximum, adding to the session’s 0.6%.
The events surrounding the “case Skripal” continues to unfold and not for the better for Moscow the key. Before Britain joined the US, which expanded sanctions to include in your black list including some of the country’s intelligence agencies. At the same time Germany, France and America issued a joint statement supporting London’s position. Such onslaught from the West, our currency is not sustained and accelerated decline – dollar for the first time since 13 February closed above the level of 57 rubles, which will be key for the pair in the short term.
Obviously, at this stage of the conflict and the “exchange of courtesies” between Moscow and London will not end, especially since Britain has come “reinforcements.” The strain from recent events will reduce the interest of foreign investors to domestic assets, including the ruble. Moreover, the demand for OFZ is already falling this week the Ministry of Finance has placed on the paper of RUB 40 billion and the demand was twice higher than supply.
In the short term, our currency may attempt local recovery following aggressive sales. But in the second half of the day – with the arrival on site of American players – it is possible a new wave of exit from long positions, what does the dollar further promotion above the level of 57 rubles. a tendency to lock in profits before the onset of the weekend will be as relevant as ever, given the risks from the West and the forthcoming presidential elections of the Russian Federation, while in the second case, no surprises are expected.
Igor Kovalyov,
InstaForex companies group