Strategist at Danske Bank Vladimir Miklashevsky sees the Russian currency well underpinned in the short term horizon.
Key Quotes
“Russia’s Ministry of Finance (Minfin) continues its FX purchases. Yet, the recent daily amounts have decreased to marginal levels, not affecting the RUB spot at all. However, the rising oil price could accelerate FX purchases, cooling down RUB’s excessive appreciation”.
“Given the crude price rise, we raise our short-term view on the RUB, rolling the medium- and long-term RUB levels. High carry and grown demand for Russia’s local debt support further the RUB in the short term. We expect RUB and oil price divergence to shrink on the rising Brent price”.
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