After Three-Week Lows, Russian Ruble Finally Rebounds
It was over three weeks since the trading value of the Russian ruble was exhibiting a lower level. Finally, the dark clouds seem to have moved aside and the Russian ruble has started making a recovery.
Russian Ruble Rebounds
On Monday, the Russian ruble was able to perform well against the US dollar (USD). The ruble has also performed well against the euro as the data has recorded a rebound in its value against both the major currencies.
The price chart for the ruble shows that it has managed to experience a rebound from the lows it had observed for three weeks. The data was recorded for the Monday trading sessions on the Moscow stock trading market.
The price of the ruble experienced a rebound supported by a couple of fundamental factors. These factors include oil prices that are going down. The second factor is the month-end tax period which has proven to be favorable for the ruble.
Performance of Ruble against USD and EUR
The data from the Monday forex trading market shows that the value of the Ruble surged by 2% against the USD. Following the rise, the value of the Russian ruble rose to 60.42. Prior to hitting the 60.42 level, the value of the ruble had hit its weakest value on July 7, which was recorded to be 62.4875.
The Russian ruble’s value rushed by 1.1% against the euro. Following the surge, the value of the ruble against the EUR was at 61.78.
The Ruble is Able to Retain Fundamentals
As per the analysts, the Russian ruble is able to hold its resilient fundamentals. The supply from exporters and the foreign currencies’ demand from the importers is not outweighed by the population.
It was due to the strong current account surplus and the high oil prices that some losses stemmed last week. Still, the ruble ended up losing a high percentage of its value against the USD. To be exact, the dip of the ruble versus the USD is 7%.
It was due to the end of the dividend and tax period that the ruble ended up weakening steadily. The statement was made by Locko Invest’s head of investment, Dmitry Polevoy.
The decision of the central bank to cut the rate to 8% and the possibility of the central bank cutting, even more, has reduced the ruble’s upside pressure.
According to Polevoy, it is highly likely that the value of the ruble may end up getting weakened. If that happens, then the value of the ruble may range from 63-65 versus the USD.
So far in the year 2022, the ruble has proven to be a very strong currency. Even the Russian stock indexes have been performing really well in the stock markets. The RTS index has experienced a 1.4% surge in the recent trading market session growing up to 1,144.8 points.