The ruble will get triple the support

  • And
  • +A

On Friday, the Russian currency continued recovery and by the end of the trading week left in the flat, recouping the losses incurred in the first half of the week. The dollar touched lows in the area of 56.20 RUB in the correction towards level 56.
At the end of the week the ruble felt more confident position. First, it came to no positive effect on the dollar from the “hawkish” fed. Second, oil prices returned to growth thanks to inventory reduction and production in the United States. Thirdly, the currency was experiencing the support of a tax period, peaking in the coming days. And finally, on the side of the ruble has played a positive expectations regarding the decision of the leading rating agencies for the rating of Russia.
It lived up to expectations. The S&P returned to the country sovereign credit rating to investment grade, raising it by one position, from BBB – to BB+ with a stable Outlook. Fitch, as expected, left the rating at BBB – with a positive Outlook. Despite the fact that such an outcome was expected and mostly priced in, the fact that the improved rating may increase the attractiveness of ruble assets in the eyes of non-residents.
This factor, coupled with improvements in sentiment in the oil market and the peak of tax payments is able to strengthen the position of the “Russians” in the coming days. The primary goal in this scenario is the mark 56. Next immediate support is expected at 55,70 RUB.
____________
Igor Kovalyov,
Analyst
InstaForex companies group