FX.co ★ Ruble grows amid rise in oil prices

The Russian ruble that was one of the main outsiders in the financial market not long ago started to climb. Now the currency recovered sharply and some experts even call it a rising star in the forex market.

At the same time, the Russian mass media are not the only ones who say the ruble can meet high expectations, in fact, they always say it. Foreign reliable experts forecast a strong growth of the Russian currency as well. For example, John Hardy, the head of FX strategy at Saxo Bank, claimed that US economic data weakened strongly enough to restrain expectations for the interest rate by the Fed but not enough to make investors avoid risks. This leads to growth in the stock markets, unconcern, and carry speculations. He also added that the Russian ruble is now a star of the financial markets thanks to the rise in oil prices. The expert also noted that "the endless political chaos" in the US restrains the dollar significantly so that it fell against the Russian currency. Currently, the ruble trades at 56 per dollar. The ruble is driven by the growth of oil prices. These two assets are highly interdependent: if oil prices increase, the ruble strengthens as well.

Besides, Saudi Arabia and Russia have agreed to extend oil production cuts for another 9 months which means the further climbing of the ruble is likely.