The Russian ruble is one of the most sensitive currencies to the US election as a Biden win is set to end with the United States imposing new sanctions on Russia. Furthermore, oil prices hit the lowest level since June, adding pressure to the RUB, Piotr Matys, Senior Emerging Markets FX Strategist at Rabobank, briefs.
“If Biden is elected, tensions between Moscow and Washington would likely increase further and could culminate in the US imposing a new set of sanctions on Russia. The last four years have been dominated by the Democrats arguing that Russia interfered in the 2016 election won by Trump, who has an affinity for President Putin. While both countries may cooperate on arms control, the relationship is likely to be tense amid strong anti-Russian sentiment on Capitol Hill.”
“To some extent Biden becoming the next US president is already priced in by the market. That said, his victory and the Democrats regaining the Senate and retaining the House of Representatives should still bring closer the March high at 82.8729 in USD/RUB.”
“The upside pressure on USD/RUB is not only fuelled by the prospects of a Blue Wave in the US, but also by lower oil prices. Brent crude fell to the lowest level since June (before bouncing back modestly) on the back of growing concerns about the negative impact of the second wave of the pandemic on economic activity in Europe. The US is also struggling to contain the virus and without fresh fiscal stimulus, the economy may lose momentum.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.