The chair of the U.S. Federal Reserve, Jerome Powell, indicated that a reduction in the benchmark interest rate may come in 2024, according to reports from TASS. Powell noted that policy remains likely to tighten only if the economy deviates from expectations, and that current rates could be decreased if the overall economic trajectory aligns with forecasted outcomes this year.
Analysts noted that the ruble continued to lose ground this week, slipping about 1.5 percent against the dollar. Projections suggest the dollar could range from 88 to 90 rubles in the coming week. The Fed’s policy corridor decision, scheduled for January 31, is expected to be a focal point for markets next week. Experts anticipate policy rates will stay at their present levels until the decision is announced. (Cited: TASS)
According to Milchakova, an analyst formerly with Freedom Finance Global, the key labor market data in the United States will be released toward the end of next week. Market participants will be watching closely, as stronger or weaker employment figures could influence the dollar and, in turn, the ruble. A weaker dollar might boost the ruble’s appeal in the near term, should labor market data add pressure to rate expectations. (Cited: Milchakova analytics)
A former financial analyst offered a prediction for the dollar exchange rate next month, highlighting how shifts in U.S. labor data and Fed policy signals could shape currency movements. (Cited: Market commentary)