The ruble steadily falling against the dollar because of the British scandal

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During the session on Wednesday, the ruble has declined steadily against foreign currencies, although in a moment touched a two-week low at 57.25 dollar. The main driver of the weakening position was the deterioration of Russia’s relations with Britain, and in General a common background did not have to buy risky assets, including our currency. At the end of the day, the dollar closed above the psychological mark of 57 rubles. for the first time in a month.
The relative calm in the Russian market has broken the London, who decided to expel a Russian diplomat 23, freeze certain assets and to take the other, “secret” measures against Moscow. It should be noted that aggressive stance of the British Prime Minister reacted more sensitive to the ruble and stock indexes and shares of state companies, which have fallen sharply. Meanwhile, our currency has come under pressure along with their colleagues in the developing sector into an unstable attitude to risk, and may added to the negativity. More tangible reaction from the currency, we will see in the case of escalation of the Russian-British conflict, the development of which will be closely monitored by domestic and foreign investors in assets of the Russian Federation.
What is happening in the oil market also does not add optimism ruble. Quotes can not show a clear recovery, while remaining in the power of concerns about production growth in the United States. Yesterday’s report Ministry of energy has caused Brent contradictory feelings and initially sent prices to lows of around 64. Crude oil inventories increased sharply, while oil stocks fell heavily, throwing the market into confusion. The situation in the raw materials segment remains fragile and largely dependent on the dynamics of the interest risk. So on that front, the ruble is not necessary to count on significant support.
Today in Russia the tax period, the presence of which currency you start to feel next week. The dollar in the morning trading lower in pairs with other major currencies, oil tries to recover. Under these conditions, the ruble may start today’s session with recovery and attempts to return the dollar under the mark of 57 rubles.
Igor Kovalyov,
InstaForex companies group