FX.co ★ USD and EUR diving while RUB thriving

The rate of the European single currency against the Russian rouble is slowly approaching the level it reached two years ago. For three days in February the euro depreciated 66 kopeks, hitting 63.25 for a euro. On the whole, since the beginning of the year the Russian rouble has strengthened by 2.8% against the euro.

Interestingly, as for the late 2014, the euro was worth the same 63 roubles. According to experts, effective actions and appropriate measures that were implemented by Russia’s monetary authorities supported the value of the Russian currency. Moreover, foreign policy plays a significant role in this situation. Importantly, there are speculations that the US may cancel sanctions against the Russian Federation. A thaw in relations between Moscow and Washington props up the Russian rouble exchange rate.

“One more driving force is the oil price growth. The rouble is strengthening due to rising oil prices, which are supported by the OPEC quotas, set in late-2016. Moreover, successful monetary and credit policy carried out by the Central Bank of Russia attracts additional foreign investments, which contributes to the growing rouble.

If the trend continues, then we expect the Russian rouble will be traded in the range of 60 to 60.5 against the euro by the year end,” Ivan Manaenko, the head of the analyst department of Veles Capital, points out. That is why experts suggest the rouble as the best investment option in 2017.