VIEWPOINT: Restrained risk appetite limits ruble's potential to strengthen further - Nordea Bank
MOSCOW. July 2 (Interfax) - "The short-term potential for the strengthening of the Russian currency is limited by investors' fairly restrained interest in risky assets. Despite the fact that the ruble closed up yesterday (+0.4% against the dollar and +1.2% against the euro), today the risks for the Russian ruble are leaning in the direction of moderate weakening due to the dollar's strong performance in global markets. Yesterday the ruble's dynamics were also limited by the decrease in oil prices amid profit-taking by oil-market participants. Still, the extension of the OPEC+ production-reduction deal will allow oil prices to stay above $60/bbl, a level that's psychologically important for the ruble. Also, following the U.S.' and China's return to trade talks, a situation involving a further escalation of the trade war in the near future looks unlikely. Thus, there's every chance that the Russian currency will consolidate at its comfortable level around 63 to the dollar." -Nordea Bank analysts.
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