The volatility of the ruble fell to the lowest level in two years


Three-month volatility of the ruble on Monday, September 26, fell to 14.18%, which was the lowest rate since October of 2014, according to Bloomberg.

By mid-day trading on the Moscow stock exchange dollar weakened against the ruble by 0.53% to 63,7143 RUB for $1. The Euro fell against the Russian currency by 0.23% — to RUB 71,751 for €1.

The Russian currency strengthened amid rising oil prices. According to 15:45 GMT, Brent crude on the ICE futures exchange for delivery in November rose by 1.66% to $46,65 per barrel.

According to Bloomberg, thanks to the actions of the Central Bank Russia has become the second most favorable for carry trade destination in the world after Brazil. “The fact that the ruble is stable, which is reflected in low volatility should be reassuring to carry traders, especially after the Bank of Russia has clearly stated its intention to keep its key rate unchanged [10%] until the end of the year”, — quotes Agency currency strategist at Rabobank in London Peter Mathis. According to his estimates, the dollar is in the range from 63 to 68 RUB. should be retained at least in the next few weeks.

On Friday, September 23, the price of Brent crude fell 3.5% to $45,64 per barrel. The price of oil fluctuates ahead of the meeting of OPEC member countries and Russia in Algeria, which is expected to discuss the issue of freezing of production. Saudi Arabia initially declared readiness to the decline in production from current record levels before the January levels, provided that Iran agrees to freeze production at current levels. But soon Riyadh said that any agreements from the meeting is not worth waiting and the meeting will be Advisory in nature. Bloomberg, citing three sources said that the reduction of the probability of the transaction means that the Russian delegation will join the discussion only after the members of OPEC would reach consensus among themselves.

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