12 Nov 2018 15:08

VIEWPOINT: Risk of ruble of USD/RUB currency pair holding above 68 remains - Veles Capital

MOSCOW. Nov 12 (Interfax) - "This morning the USD/RUB currency pair was one of the strongest performers on the global markets. Sales of FX proceeds and the strengthening of the ruble in such conditions was possible thanks to reports the Russian and American presidents would meet at the G20 summit, although oil prices, following the meeting of OPEC+ representatives, also made a positive contribution. But despite a temporary improvement in the geopolitical environment, the situation with respect to new sanctions against Russia remains uncertain, putting more pressure on the ruble at times when the global markets are calm, and depriving it of support at times when positive factors prevail. In these circumstances there is still a danger the USD/RUB pair will consolidate at more than 68 rubles, but the hopes of investors that the sanctions rhetoric will soften could facilitate a gradual correction for the dollar to 67 rubles or lower. However it should be remembered that the last meeting between the leaders of the two countries was unable to prevent another wave of sanctions 'escalation'," said Yury Kravchenko, head of the Veles Capital investment company's banks and money market analysis department.

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