USD/RUB oscillates around 120.00, officials expect a truce between Russia and Ukraine in May
- USD/RUB steadies near 120.00 amid a minor plunge in the DXY.
- Ukraine officials are expecting a ceasefire in May after Russia will be out of its resources.
- Unsold oil in Russia due to sanctions by the West is getting toxic for their economy.
The USD/RUB pair is oscillating around 120.00 after a minute sell-off in the US dollar index (DXY). The major has been volatile since the initial headline of Russia’s invasion of Ukraine and is continuously delivering wide ticks and volumes amid carnage in the Russian economy. The visibility of death and destruction in Ukraine President Volodymyr Zelenskyy’s area displays the crisis in Ukraine but one thing is for sure the stockpiles of oil in Russia is being toxic for the Russian economy.
Adding to that, the interest rates in Moscow are at the rooftop after the collapse of the SWIFT international payment system and galloping credit risk in their economy. Therefore, Russia is also facing a crisis, which may leave some serious dents on the financial condition of their economy for decades post the ceasefire.
Meanwhile, Oleksiy Arestovich, an adviser to the Ukrainian President's Chief of Staff said late Monday, the Russia-Ukraine war is expected to end by early May, per Reuters. Ukraine's authority believes that a war with Moscow will be over when the latter will be out of resources.
Earlier, the US claimed on request of military assistance to China by the Russian rebels and China’s willingness to bail out Russia against tough sanctions from the West. In response to that, ''The Chinese embassy in the US on Sunday said it had no knowledge of any Russian request or positive Chinese response to Moscow.
On the dollar front, the DXY has plunged below 99.00 amid a rebound in the risk-on market impulse. Risk-perceived assets are finding bids after a steady weakness while the appeal for safe-haven assets is modestly eased.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
