The ruble will not be able to resist the sales of oil

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Domestic currency not active retreats to a basket of currencies on Friday afternoon. The U.S. dollar is growing by 0.4% and is 65,87 EUR RUB adds 0.2%, and traded at RUB 74,75 Courses Central Bank of Russia on the coming weekend and Monday, 29 October, makes 65,63 RUB per U.S. dollar and 74,66 RUB for Euro. Both scores decreased by 11 and 32 kopecks, respectively.
The interest rate of the Central Bank of the Russian Federation on the results of the October meeting remain unchanged at the level of 7.50% per annum. All very expected – until inflation reaches its peak, the controller will not change the bet level. Everything else there is the aspect of the external background, which in the next month are able to get worse. Ahead of time it makes no sense to use this monetary mechanism. The ruble has left the decision of the Central Bank of the Russian Federation without attention.
The commodity market has deepened the decline. This is, perhaps, the ruble is now the priority. A barrel of North sea Brent crude falling by 1.3% and costs $74,92. On the market in October-December can be formed an excess commodity supply – on the eve of talked about this two of a Saudi official. As noted in the margins of the market, OPEC now needs to more closely monitor the balance of supply and demand, otherwise the world’s reserves of black gold will start to increase again. In addition, according to Saudi Arabia by the end of the year oil demand will be somewhat reduced.
China, meanwhile, has reduced the volume of purchases of Iranian oil, according to the WSJ. This occurs before the beginning of the second stage of tightening the sanctions of the U.S. against Tehran. The news does not add oil market optimism.
It is doubtful that the ruble will long withstand such a negative for the commodity currencies foreign background. In addition, the U.S. currency is rising again on the world market. The US dollar closed trading on Friday in the range of 65.55-66,45 rubles, the immediate resistance is in the area of 65,90-of 66.00 RUB EUR/RUB will go away for the weekend in the hallway 74,65-75,35 RUB.
Anna Bodrova,
Senior analyst,