The ruble will fall, despite a temporary positive from the review of the Ministry of Finance
Ruble mosbirzhe Wednesday slowed the decline against the dollar and the Euro after the comments of the Finance Ministry plans to buy foreign currency.
Dollar exchange rate at 12.50 grew 19.5 cents to 68,31 of the ruble. The Euro by this time was strengthened by 18.5 cents to 79,11 of the ruble. Before the release of the review of the Ministry of Finance, the ruble lost to the dollar and the Euro is about 30 cents.
According to the Ministry, the amount of funds to purchase foreign currency under the budget rule, from 7 September to 4 October will be 426,9 billion, a record level. In September the Finance Ministry will buy foreign currency from Bank of Russia no equivalent of foreign currency purchases in the domestic market.
The Finance Ministry also added that the Central Bank has the instruments to reduce volatility in the Russian currency market. For example, the financial regulator may change the volume of buying currency for the Ministry of Finance.
Despite the positive market impact reviews from the Ministry of Finance, in the short term the ruble is likely to continue to decline because of the risk of imposing new economic sanctions on Russia. It can be expected that until the appearance of clarity on sanctions, the ruble will move in the range of 68.3-69 of the ruble against the dollar and the 79-79. 5 rubles to the Euro.
GK Forex Club