The Russian national currency continues to lose ground to the dollar and the Euro during today’s trading on the Moscow exchange, with the U.S. currency for the first time since may 14 exceeded 74 rubles.
As of 12:18 Moscow time the dollar calculations “tomorrow” has jumped by almost 91 kopecks to the previous close to 74,0775 of the ruble. The Euro soared to 1.08 ruble and was on the mark 87,73 of the ruble, according to data exchange.
As analyst IK “VELES the Capital” Elena Kozhuhova, yesterday, “the Euro/ruble grew steadily and reached a new high since the beginning of April 86,94 of the ruble, ending the session higher of 86.50 ruble.” “The European currency continues to rally in the Forex market, where it rose to a peak from may 2018, surpassing the mark 1,1800,” reads the review expert.
Today, the Russian national currency is weakening amid falling demand for risky assets in global markets. An additional negative factor for the ruble was the conversion of dividends of Russian companies by foreign investors, RBC.
Moreover, says financial expert CEX.IO Broker Alexander Yanuk, “ruble drops even against substantial sagging of the dollar on world markets”. “The demand for government bonds fell to the level of June, so investors do not expect a strengthening currency, or even its stability”, — the expert believes.
For his part, the Deputy head of IAC “Alpari” Natalia Milchakova adds that “the Euro against the ruble soared in the” background “growth risks for the world economy and currencies of developing countries.”
Meanwhile, the Russian Central Bank to reduce volatility in the market sold 30 Jul currency 5.8 billion, and since March 10, the volume of currency sales on the domestic market reached 1 trillion 68.9 billion rubles.
We also recall that the Russian national currency since the beginning of this year has significantly depreciated against the dollar and the Euro. Strong pressure on the rouble had a General panic in the financial markets due to the rapid spread of the pandemic coronavirus infection COVID-19 and concerns about its impact on the global economy, and a collapse in oil prices.
Thus, a strong devaluation of the Russian currency occurred on March 7 on the international Forex market, after the day before the deal collapsed OPEC+, — countries of the Alliance are unable to agree on cutting oil production, nor of the extension of the deal for a longer period (1 April 2020). Then, on March 9, 2020, the financial and oil markets suffered “black Monday”, and on 18 March, the market embraced a “black Wednesday” with yet another collapse of oil prices, the Russian national currency in the course of trading on the Moscow stock exchange has updated (at the time) a record low against the dollar and Euro since February of 2016, 81 and 88 million, respectively.
We add that the real effective exchange rate of the ruble (inflation-adjusted) in June 2020 rose 2.9% against foreign currencies relative to the previous month. In this case the real rate of the ruble against the dollar rose during this period by 5.2%, to Euro — by 1.7%. However, for the first 6 months of the current year the real effective ruble exchange rate decreased by 5%.
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