The ruble extremely undervalued and continues to fall

  • And
  • +A

The ruble resumed its decline at auction on Thursday, although the above region 62 roubles to the dollar to rise failed due to softening of the pressure effect from the oil market, where Brent has updated the long-term highs, violating the integrity level 80. Following the session, the dollar and the Euro rose on average by 0.6%.
The balance of power in the Russian currency remains the same. Over the domestic market continues to soar the spirit of the new sanctions, which Washington prepare; the Ministry of Finance continues to buy foreign currency; emerging markets continue to suffer from rising interest rates in the United States. On Thursday, the yield on 10-year treasuries has updated the 7-year highs at the level of 3,105%. As unequal counter are expensive oil and tax period. It is inequitable because the unbinding rate of the ruble from the dynamics of the black gold and neutralization of tax payments due to interventions of the Ministry of Finance.
Against this background, for almost a month, the ruble may push the dollar under the mark 61 RUB, though, and was able to move away from the lows reached on April 11. The overall situation continues to speak against our currency looks undervalued in comparison with current levels of oil prices. So if the dollar in the coming days will Mature correction, the ruble may attempt a more robust recovery, provided that Brent will not attract aggressive profit-taking. The above level 61 RUB remains the key barrier to strengthening the “Russians”.
____________
Igor Kovalyov,
Analyst
InstaForex companies group