|Day's Range||0.015 - 0.015|
|52 Week Range||0.0142 - 0.0184|
The International Monetary Fund said on Thursday that Russia might benefit from further interest rate cuts if inflation stayed subdued. The Russian central bank is set to review interest rates on Friday and is widely expected to address risks stemming from recent sell-off in the rouble and government bonds. The view is in line with what Prime Minister Dmitry Medvedev said last week but contrasts with the central bank's own stance.
The Russian rouble crashed to its weakest levels in two and a half years on Thursday, pressured by fears of more Western sanctions after Britain revealed details about the Salisbury nerve agent attack. The rouble hit 69.64 versus the dollar in afternoon trade on the Moscow exchange, the level last seen in late March 2016. "There was a huge purchase of foreign currency after the U.S. market has opened, apparently, ahead of the United Nations hearings," said a dealer at a Russian state bank, who asked not to be named, referring to a briefing at the U.N. Security council on British findings about a nerve agent attack in the city of Salisbury in March.
The Russian central bank will need to postpone a plan to cut rates due to new U.S. sanctions against Moscow seen taking toll on inflation and the rouble, a monthly Reuters poll of 20 analysts and economists showed on Friday. Russia's economic outlook deteriorated after the rouble hit more than two-year lows against the dollar in August following Washington's move to apply fresh sanctions against Moscow and a warning that it could extend them in the future. The central bank, in charge of inflation and financial stability, is now seen holding the key interest rate unchanged at 7.25 percent by the end of the first half of 2019, according to the poll.
The rouble weakened towards its lowest in more than two years on Wednesday as traders priced in the risk of more U.S. sanctions and foreign currency purchases by the Russian central bank took their toll. The rouble has shed more than 8 percent of its value against the dollar so far this month, vulnerable to risk aversion and volatility that was fuelled by jitters in other emerging markets and threats of further U.S. sanctions. The U.S. Treasury imposed sanctions on various Russian entities on Tuesday, and a new tranche of sanctions announced by the U.S. State Department earlier this month was expected to take effect later on Wednesday.
Banks, Global Stocks Fall as Turkey Implodes After Turkish President Recep Tayyip Erdogan published an op-ed in the New York Times about how Turkey may start looking for new friends to replace its alliance with the United States, holders of Turkish Lira decided they didn’t quite want to hold it anymore. The Lira/Dollar exchange rate […] The post Market Morning: Imploding Turkey, Harley Boycott, Tesla Privatization Hullabaloo appeared first on Market Exclusive.
The New Zealand Dollar closed sharply lower against the U.S. Dollar last week after the Reserve Bank unexpectedly committed to keep interest rates at record lows through to 2020 on disappointing economic activity. The Reserve Bank of Australia wasn’t as dovish as the RBNZ, nonetheless, the Australian Dollar weakened as the central bank showed no intention of raising rates over the near future. The Dollar/Yen was under pressure last week on trade tensions and on revelations the Bank of Japan is under pressure to move away from its accommodative policy. Geopolitical tensions in Turkey drove the Lira sharply lower, causing investors to dump higher-yielding currencies like the Euro, Australian and New Zealand Dollars. Money then flowed into the safe-haven U.S. Dollar and Japanese Yen.
MARKET PULSE U.S. stock-index benchmarks slumped to start Friday trade, tracking a global equity retreat fueled by a mounting currency crisis in Turkey, which raised the alarm for possible contagion into other markets.
The New Zealand dollar sees a sharp move down against the U.S. currency on Thursday in response to a dovish message from its central bank.
The Russian ruble drops more than 3% against the U.S. dollar Wednesday and extends its dive to a 2-year low on Thursday, as further U.S. sanctions appear at the horizon.
The Wall Street Journal reported on Monday that hackers from a Russian state-sponsored group invaded the control rooms of U.S. power companies. Tension grows between the US and Iran after President Trump warns the Iranian President.
Donald Trump and Vladimir Putin meeting in Helsinki was more of a show than a political event. Yet, there were a number of key takeaways that the two managed to achieve.
President Donald Trump is upset about something. In a tweet Monday morning, Trump fired off a somewhat perplexing thought about China, Russia, currency devaluation, and U.S. monetary policy. “Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates,” Trump said.
Russia's central bank said on Monday it would not intervene in currency markets following a sharp drop in the value of the rouble, playing down the impact on the currency of new U.S. sanctions. Volatility on Russian markets has soared since Washington imposed fresh sanctions on April 6, targeting some of Russia's biggest companies and most prominent businessmen to punish Moscow for its alleged meddling in the 2016 U.S. election and other "malign activity". The rouble plunged more than 10 percent versus the dollar last week to its weakest level since late 2016, before recovering slightly to close down 6 percent on the week on Friday.
The Russian rouble and shares in some of Russia's biggest companies slid lower on Monday, dragged down by the threat of new U.S. sanctions and lower oil prices. Volatility on the Russian market has soared since Washington imposed fresh sanctions against Moscow on April 6, targeting major Russian companies and some of the country's most prominent businessmen. Dangers of a direct military confrontation between Russia and the United States eased over the weekend after Western missiles fired at Syria over a suspected poison gas attack steered clear of any Russian troops on the ground.
Russia's rouble has endured its worst week in more than 2-1/2 years but foreign exchange derivatives predict more pain ahead as bond and equity investors continue slashing exposure to the market after tough new sanctions from the United States. While a market bounce in the past two days has helped the rouble nearly halve its weekly losses since Wednesday, option market indicators such as implied volatility and risk reversals on the Russian currency remain at extremely elevated levels. More significant for the near-term outlook is the inversion in the implied volatility curve, with one-month options trading well above longer-dated ones, something which has happened in the rouble curve fewer than 10 times in the past decade.
The rouble touched its weakest since late 2016 before recovering a small part of recent losses as a sell-off of Russian assets, triggered by more U.S. sanctions, extended into Tuesday with the reaction from local authorities still muted. The United States on Friday imposed sanctions against 17 senior government officials plus seven oligarchs and 12 companies they own or control, sparking an investor exodus. It later edged up from lows as the price of oil, Russia's main export, rose.
MOSCOW (Reuters) - The Russian rouble reversed gains and weakened on Friday, hit by sliding oil prices that also pressured stock indexes. Shares in metal companies underperformed the broader market following ...
FXEmpire’s analyst Bob Mason discusses the USD, the Latvian banking crisis and UK-EU relations after an eventful few weeks in the markets.
Russian assets showed little reaction to Tuesday's release of a U.S. report naming major Russian businessmen among a list of people close to President Vladimir Putin, with stocks and the rouble both firmer by afternoon trade. Publication of the U.S. Treasury department's "oligarchs' list" had threatened to prompt a sell-off in Russian assets but its impact was blunted by the United States saying on Monday that it would not immediately impose new sanctions on Russia. The list of 210 people nevertheless casts a shadow of potential sanctions risk over some of Russia's biggest firms.
The Russian ruble seems to have run out of luck. Yesterday, the currency lost 1.5% against the dollar and 2.5% against the euro, with this drop coming in as a result of several negative factors. The API reported an increase in oil inventories, which may be confirmed later in the day in the official report. … Continue reading Ruble Suffers Biggest Drop in More Than a Year