The ruble is growing at the fed’s policy
The ruble continues to strengthen in trading on Thursday after a powerful rally ahead. The dollar went under the mark of 63 RUB noting the lows of early July in the district 62,85 RUB, decreasing of 0.2%. Euro/ruble is located under mark of 71 rubles, losing 0.11 percent.
Strengthening of ruble happens against the backdrop of heightened demand for assets in developing markets in General. This is facilitated by dovish comments Powell in the framework of yesterday’s report at the Congress, and strengthened the faith of investors that the decline rate at the end of this month will be held.
Soft rhetoric of the fed had a positive effect on the dynamics of risky assets, including the ruble. On this background additional support for our currency gets from the widespread weakening of the dollar.
The rise is observed in the oil market. Brent has overcome a mark of 67 dollars per barrel and moved almost 1.5-month highs at the level 67,63. Market participants play a strong energy Ministry data, reflecting a large-scale reduction of oil reserves of 9.5 million barrels, the aggravation of the situation around Iran, which trump threatens new sanctions, as well as reports of the impending storm in the Gulf of Mexico.
Getting support from the commodity segment, in the short term, the dollar/ruble is likely to continue to trade close to 63 RUB.
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