What will happen to the dollar after the elections in Russia?
All the information space of Russia today will be busy on the eve of the past presidential election. The ruble is waiting for a hard week, which began with a slight decline in the value of the Russian assets.
Yesterday have passed elections of the President of Russia. Today during the day will be discussed the results of the vote. CEC has already announced a record turnout, and as of 8 am Moscow time have been processed almost 100% of the ballots. By a wide margin, gaining 76,6%, incumbent President Vladimir Putin. The nearest competitor, Paul Grudinin scored almost 12% of the votes that the Communist party is the result of a failure.
It is worth noting that independent sources of information was a huge amount of information about multiple violations, ballot box stuffing, there is evidence of video fixing of violations at polling stations. However, in December of the regions were tasked to 70 and 70. To ensure the attendance of at least 70% and 70% of people must vote for “the main candidate”. I must say that the administration of the President together with the governors, have successfully coped with the task.
The dollar has not yet reacted to the election results in Russia
The Russian market reacts to it somewhat negatively. We see the decline of the Russian ruble and stocks of Russian companies on Monday. At the auction the Moscow exchange rate of the dollar is around 57 rubles 65 kopecks, the Euro traded at around 70 rubles 70 kopecks. The MICEX index dipped to 2290 points, quotes of Brent oil fell slightly below $ 66 per barrel. Bitcoins according to CoinMarketCap kept at 8300 dollars.
The Russian market waits for many events in the upcoming week. There will be a meeting of the US Federal Reserve.
Also to be announced interest rate decision from the Bank of Russia. In fact, this week will be a “tax” when exporters will buy rubles to pay the severance tax. Likely increase in U.S. interest rates and very likely a reduction in the rate in Russia will put pressure on the ruble. But at the same time, support of exporters can reduce the pressure to zero.
We continue to believe that the U.S. dollar on the MICEX will soon be kept in a range from 57 to 58 rubles. But, as the second quarter of the domestic currency can be issued quite simple.
The head of the analytical Department of the company,