USD/RUB gains traction near 94.00, eyes on Fed’s Chair Powell

USD/RUB posts modest gains near 94.00 during the Asian session on Thursday. Meanwhile, the US Dollar Index (DXY) consolidates its gains around 103.35 as investors prefer to wait on the sidelines ahead of the Jackson Hole Symposium and Federal Reserve (Fed) Chairman Jerome Powell Speaks this week.

Russian President Vladimir Putin stated on Tuesday that inflationary risks were developing in the country's economy, urging the government and central bank to keep the situation under control.

That said, Russia's budget is under pressure as a result of the Ukraine conflict, and the central bank was compelled to raise interest rates last week to stop the Ruble's decline. It’s worth noting that the Bank of Russia raised the interest rate by 350 basis points (bps) to 12% last week.

Russia has increased its 2023 military spending goal to more than $100 billion, accounting for a third of all state expenditure, as the rising costs of the Ukraine conflict impose a mounting strain on Moscow's finances, according to Reuter.

On the US Dollar front, Federal Reserve Bank (Fed) of Richmond President Thomas Barkin said that monetary policy would need to be tightened if inflation remained elevated. Market players will take cues about the interest rates outlook from the Jackson Hole Symposium on Thursday. Hawkish comments from the central banks' policymakers might boost the Greenback against the Russian Ruble.

Looking ahead, traders will closely watch the Jackson Hole Symposium and the Federal Reserve (Fed) Chairman Jerome Powell's Speech. Traders will take cues from the data and find opportunities around USD/RUB. Also, the headline surrounding Russia’s war in Ukraine remains in focus.