Russian ruble weakens beyond 72 against the dollar as oil prices decline

By 1048 GMT, the ruble was 0.4% weaker against the dollar at 71.84 RUBUTSTN = MCX, briefly touching 72.0125, its weakest point since Oct. 13, except for a drop of a few seconds on the Moscow Stock Exchange on Oct. 22, likely caused by a trading error.

It had lost 0.5% against the euro, trading at 83.35 EURRUBTN = MCX, earlier hitting an almost four-week low at 83.5125.

The U.S. Federal Reserve’s November 2-3 meeting is on the agenda as the market searches for clues as to the timing of its first interest rate hike since December 2018 and the number of those increases.

The Fed is also expected to announce that it will cut its $ 120 billion monthly bond buying program by $ 15 billion. Monetary tightening in the United States is expected to support the dollar, while putting pressure on the ruble.

The ruble, which has outperformed other emerging market currencies so far this year, could also come under downward pressure from risk aversion, as players generally tend to reduce their risk exposure before longs. weekends. The Moscow Stock Exchange will be closed on November 4, then on November 6 and 7.

The ruble is sensitive to short-term negativity, said Dmitry Polevoy, investment manager at Locko-Invest, but there is little reason for a sustained decline. He expects the unit to return to the 68-70 range against the greenback in early 2022.

Brent crude oil LCOc1, a global benchmark for Russia’s main export, fell 0.1% to $ 84.63 a barrel, gaining ground ahead of the next OPEC + meeting later this week. WHERE

Russian stock indices were down.

The RTS index in dollars .IRTS was down 1.1% to 1,847.3 points. The Russian MOEX index based on the ruble .IMOEX was down 0.2% to 4,213.7 points.

For the guide to Russian stocks, see EF / EQUITY

For Russian treasury bills, see 0 # RUTSY = MM

(Reporting by Alexander Marrow; Editing by Sherry Jacob-Phillips and Krishna Chandra Eluri)

((alexander.marrow@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Felix J. Dixon

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