Economics

Russian ruble to update next minimum because of sanctions and oil prices fall

14 october 2014 | 16:10

Oil falls and sanctions are not being removed. The geopolitical situation remains tense. Strengthening of the ruble is not believed.

 

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Russian ruble continues to fall
Andriy Tovstyzhenko, ZN.UA
In the morning of Tuesday, Oct. 14 Russian ruble continues to update the lows because of the foreign currency shortage by limiting access to Western resources and on the background of oil prices falling.

"Oil prices and the prospects of their further reduction are in the focus of investors, which is put in current quotes," Anton Tokmakov from the Absolut Bank said.

The U.S. currency calculations for "tomorrow" is estimated by the Moscow exchange in 40.66 rubles, 0.4% points higher than the previous one. Previously a new high for the US currency was reached – 40.69 rubles.

"In addition to physical demand for the currency, current situation is good for speculators in long currency positions. Intensity of basket shifts beats all funding costs and possible risks of the ruble turn unto plus, which is actually now is almost impossible - oil drops and sanctions are not going to be cancelled, the geopolitical situation remains tense," Peter Neymyshev from the Otkrytiye Bank said.

Recall that last week the oil price fell to a four-month low, and the ruble reached a level of 40 rubles per dollar.

Source: Reuters

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