18 Jul 2019 14:24

VIEWPOINT: Ruble volatility at lowest since April 2018 - Nordea Bank

MOSCOW. July 18 (Interfax) - "The Russian currency is remaining within narrow trading ranges - under 63 to the dollar and 71 to the euro. The external environment as a whole is still neutral as a whole, which ensures relative stability for the Russian currency. The ruble's volatility has fallen to its lowest point since April of last year. OFZ auctions took place yesterday. This factor is no longer the dominating one in the dynamics of the Russian currency. The Finance Ministry placed 15.5 billion rubles in bonds (for comparison, in February-May, the average volume of placements was 76 billion rubles per week). In H1, the participation of foreign investors in these operations took place in volumes capable of influencing the forex market. Given the current decreased volumes, the OFZ factor for the ruble is moving to the background and being replaced by the external situation and general moods in global markets. Expectations that the Federal Reserve will lower the rate at its meeting on July 31 are supporting appetite for risk and making it possible for the ruble to stay at its comfortable current levels. The approaching peak of the tax period, which falls on July 25, should be considered a local element of support." - Nordea Bank analysts.

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