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Ruble Holds Steady: All Eyes on Interest Rate Decision

Daniel Kim Views  

Russian Ruble. (Photo=Yonhap News)

The Russian ruble is showing signs of stability.

On the 21st (local time), the Russian ruble showed stability, boosted by high oil prices, ahead of the central bank meeting on Friday. The central bank is expected to maintain the interest rate at 16% for the second consecutive meeting.

The ruble traded at 92.39 with the dollar, showing a 0.2% depreciation. It traded at 101.00 against the euro, falling by 0.7%. It also recorded a 0.1% decline against the yuan, recording 12.81.

Brent crude, Russia’s major export, rose 0.5% to $86.41 per barrel, recording its highest level this week since the beginning of last November.

Vladimir Putin elected as the next president in the presidential elections. (Photo=Yonhap News)

The Russian stock index was even higher. The dollar-denominated RTS index recorded 1122.8 points, up by 0.8%, and the ruble-based MOEX Russia index recorded 3293.3 points, up by 0.8%.

President Vladimir Putin extended his rule for another six years after a landslide victory last week. Western governments criticized him for unfair and undemocratic practices, but China, India, North Korea, and others congratulated him.

Now, the focus of the Russian market is set on the central bank. Analysts expect Friday’s lending costs to remain constant, but some have mentioned the possibility of a slight increase.

Daniel Kim
content@viewusglobal.com

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