The ruble does not make sharp movements by a decline in reserves of the Russian Federation

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The Russian ruble on Tuesday afternoon strengthened against the dollar and the Euro, but no sharp movements on the currency market. Recent activity is “waking up” to the evening, which is suggestive of the absence of the resident on leave and on vacation, most likely. The American currency by mid-day trading on 63,19 RUB and decreases by 0.4%. Euro losing 0.1 percent and is 73,66 RUB Official rate of the Central Bank of the Russian Federation on Wednesday, July 4, increased for us dollar and Euro to RUB 63,21 (+8 cents) and 73,70 rubles (+24 cents), respectively.
The American dollar on the world market feels quite stable. Tomorrow the US market is closed, so the activity in the main currency pair can be smoothed. The commodity market continues to spark optimism is a barrel of North sea Brent crude oil returned above $78 (+1%). Barrel of Texas light oil WTI traded at $74,76 and rises by 1.2%. Today, the market continues to monitor the development history of USA and Iran and is waiting for the evening latest statistics from the API’s oil reserves and energy resources. Unusual that the traditional report US Department of energy on stocks will be released this week on Wednesday and Thursday.
While the market does not react to information about the decline in international reserves of the Russian Federation due to the sharp devaluation of the Chinese yuan and decrease earlier the share of Russian investments in us government debt. While the drawdown of reserves is relatively shallow – $6.1 billion, However, the situation may deteriorate. News about the increase in the degree of debt load of Russians direct relation to exchange rates and the behavior of the ruble does not have, but give another alarm regarding the state of the consumer’s wallet and the borrower.
Meanwhile, the Finance Ministry announced the transfer to the Fund of national welfare 6.4 billion U.S. dollars, 5.6 billion euros and 1.1 billion pounds of additional oil and gas revenues. Thus in June, the Fund size grew by 22.9% to 77,112 billion U.S. dollars. The Ministry of Finance of Russia from February 2017 to minimize the dependence of the ruble from oil began to buy back the currency at the expense of additional oil and gas revenues.
The bidding Tuesday for the U.S. dollar will end in the range 63,10-to 63.75 rubles, for the unified European currency within the borders of 73,50-74,25 RUB.
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Anna Bodrova,
Senior analyst,
Alpari