USD/RUB looks constructive in the longer run – Rabobank
|Piotr Matys, FX Strategist at Rabobank, believes the Russian currency could gather traction in the long term horizon.
Key Quotes
“US sanctions on prominent Russian oligarchs and their companies have triggered the biggest weekly sell-off in the ruble since 1999. Additional pressure came from escalating geopolitical tension between the US and Russia over Syria”.
“Given that it is virtually impossible to assess whether more Russian companies could become a target of US sanctions, capital outflows may continue at least in the short-term until the situation is clarified and geopolitical tension eases”.
“While stable/high oil prices and the prospect of President Putin endorsing structural reforms will support the ruble over the l/t horizon, all bets will be off if the US launches air strikes on Syria.
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