The ruble continued to slide early in the week under pressure from weak oil

The ruble continued to slide early in the week under pressure from weak oil

Courses of the dollar and the Euro has updated the highs from late August. The dollar calculations “tomorrow” to 19.21 MSK reached the bar in 70,93 rubles, the Euro – 78,30 rubles.

MOSCOW, Dec 14. Dmitry Mayorov. The ruble against the dollar and Euro in the evening was down 0.8-1% on the back of cheap oil.

Courses of the dollar and the Euro has updated the highs from the end of August, rising above 71 and 78 rubles, respectively.

The dollar calculations “tomorrow” to 19.21 MSK grew by 0.57 ruble — to 70,93 ruble, Euro — by 0.90 ruble — to 78,30 ruble, follows from the data of the Moscow exchange.

71 and 78 rubles

The ruble against the dollar and the Euro during trading on Monday continued to lose ground under the pressure of weak crude oil market.

The price of oil on Wednesday fell in the area of 36,3 USD per barrel of Brent, which is another low since the end of 2008. It’s already almost 7-year low (36.2 per dollar), below which the oil was from 2004.

Oil prices continue to fall, despite the Baker Hughes data, according to which the number of drilling rigs in the US by end of working week decreased by 28 units, or at 3,79% and totaled 709 units. In annual terms, this figure dropped to 1184 units, or 62.5%. The number of oil rigs has declined 21 points, or 3,85%, to 524 units. While the number of gas rigs declined by 7 units, or 3.6%, and totaled 185 units.

Market players take into account the possibility for the first few years of rate hike by the fed this coming Wednesday, and it’s putting pressure on risky assets, including oil and the ruble.

At the same time, the demand for foreign currency remains low. So, the banks took the foreign exchange REPO auction for 28 days 2.9 billion from $ 3.3 billion limit. At the annual currency REPO auction was taken 201,3 million dollars from 1 billion limit.

A certain overvaluation of the ruble and highlight another record low over the past few years the price of oil in ruble terms. On Monday, the price fell below 2.6 thousand rubles.

However, the dollar renewed today the highest rate since late August in the area 71,225 ruble and Euro – ruble 78,35.

Forecasts and recommendations

The price of oil remains at alarming levels below $ 40 per barrel, which supported the dollar on the turn of 70 rubles, says Yuri Kravchenko from IK “Veles Capital”.

“However, due to such a significant decline in oil prices, the domestic market participants to buy the U.S. currency more expensive 70 rubles very restrained. In anticipation of the outcome of the fed meeting oil prices and the ruble will remain under pressure, however, all possible negativity from this event already more than won back by the markets,” he added.

The pair dollar/ruble swift jerk broke the mark of 70 and appears to be targeting the August lows in the area of 71,5, appreciated Ivan Kopeikin from “BCS Express”.

“So if in the near future we will not see an upward correction in oil prices, USD/USD this week may even upgrade to annual maxima (about 71.85 rubles)”, — he added.