In the basic scenario, the dollar exchange rate next week will be 90-95 rubles. This forecast was given to socialbites.ca by BCS World of Investments analyst Denis Buivolov.
“Having lost domestic support in the form of tax season, the Russian currency may move closer to the upper limit of the corridor established in early November. But there is no obvious reason for a more serious weakening of the ruble exchange rate. “The impact of the rigidity of the policy of the Central Bank of the Russian Federation, which includes the increase in the key interest rate, as well as the rule on mandatory repatriation for exporters and the sale of the majority of foreign currency earnings, the improvement of macroeconomic data, continue to support the national currency,” he explained.
Buivolov also added that the dollar exchange rate on the world market remains quite strong in the context of acute geopolitical conditions and rising US government bond yields.
Central Bank 27 October raised The key interest rate was increased by 200 basis points in one go to 15% annually. The Bank of Russia announced that current inflation pressures have increased significantly and exceeded the regulator’s expectations. The Central Bank stated that the steady growth of domestic demand gradually exceeds the possibilities of increasing the production of goods and services and that price increase expectations in Russia remain at high levels.
After the decision of the Central Bank, the ruble exchange rate strengthened sharply – for the first time since May, the dollar fell below 93 rubles, and the euro fell below 98 rubles. At the close of trading on the Moscow Stock Exchange, the American currency stood at 94,125 rubles, and the euro stood at 99,575 rubles.
Formerly investment strategist explained Sharp strengthening of the ruble exchange rate following the decision of the Central Bank.