USD/RUB: Gradual recovery for the Russian rouble – MUFG
|The rouble has been hit hard by the twin negative shocks from COVID-19 and the oil price collapse weakening sharply during March against the US dollar from 67.153 to 77.970, per MUFG Bank.
Key quotes
“The sharply weaker rouble has limited the room available for the CBR to loosen policy to support growth. Governor Nabiullina has even hinted that rate hikes may be required to combat upside risks from inflation which are set to spike higher.”
“An emergency fund totalling about USD3.7 billion has been set up to help companies and people affected by the disruption.”
“Russia has now moved towards a full lockdown which will result in an even deeper recession. In these circumstances, the rouble remains vulnerable in the near-term but should rebound further out.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.