18 Jun 2015
USD/RUB could resume the upside in the near term – Danske Bank
FXStreet (Edinburgh) - According to Vladimir Miklashevsky, Economist at Danske Bank, believes the Russian currency could weaken further in the near term.
Key Quotes
“Looking at the average USD/RUB level and the average oil price within the last 30 days, the overvalued rouble poses fiscal risks to the Russian budget”.
“Thus, Russian economic authorities the Bank of Russia (CBR) and Finance Ministry have been on the market buying FX to replenish reserve funds, but practically taming the rouble’s strengthening”.
“Looking ahead we expect rouble weakness to resume driven by significantly higher Russian inflation than in the outside world and a weak macro situation”
Key Quotes
“Looking at the average USD/RUB level and the average oil price within the last 30 days, the overvalued rouble poses fiscal risks to the Russian budget”.
“Thus, Russian economic authorities the Bank of Russia (CBR) and Finance Ministry have been on the market buying FX to replenish reserve funds, but practically taming the rouble’s strengthening”.
“Looking ahead we expect rouble weakness to resume driven by significantly higher Russian inflation than in the outside world and a weak macro situation”