VIEWPOINT: Ruble remains subject to negative global attitudes over prospects of international economy - Nordea Bank
MOSCOW. Aug 15 (Interfax) - "On Wednesday, the ruble's 1.7% decline relative to the dollar and its 1.4% decline relative to the euro took place amid a global retreat from risky assets after spread between the yields of 10-year and two-year US Treasuries turned negative. Yesterday's OFZ placement was still characterized by strong demand, but this factor is currently unable to significantly buoy the ruble amid the negative attitudes prevailing in international markets. The tax period, which begins on Thursday, could ease somewhat the pressure on the ruble in the second half of August, but all the same, in light of the worrisome international backdrop, we continue to see risks of the ruble's further weakening. Macroeconomic statistics from the U.S. remain a key risk factor. Additional indicators of a slowdown in the U.S. economy will exacerbate negative attitudes on global markets. Softer rhetoric from the U.S. Federal Reserve could ease market tensions, but, unfortunately, no Federal Reserve statements are planned for the coming week," Nordea Bank analysts said in a report.
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