USD/RUB drops to lows near 62.80 on oil recovery

The Russian currency is gathering further traction on Tuesday, now sending USD/RUB to test daily lows in the 62.80 region.

USD/RUB weaker on oil, USD selling

The recovery in crude oil prices is lifting the barrel of Brent crude back to levels around the $52.00 handle, in turn lending extra wings to RUB and adding to the daily decline.

Additionally, the offered tone around the US dollar remains unabated ahead of today’s key CPI releases in the US economy, although market expectations of a Fed’s rate hike by year-end keep supporting the greenback and limiting the downside.

In the Russian calendar, Producer Prices during September is due later followed by Unemployment Rate and Retail Sales figures on Wednesday.

USD/RUB levels to watch

At the moment the pair is losing 0.38% at 62.87 and a break below 61.85 (2016 low Oct.10) would expose 60.70 (low Oct.9 2015) and then 48.79 (low May 13 2015). On the flip side, the next up barrier lines up at 63.49 (high Oct.13) followed by 64.25 (high Sep.26) and finally 64.44 (100-day sma).