FX.co ★ Ruble’s slide no longer surprises anybody

The ruble took a nosedive again. However, this time a slide came as no surprise to both market participants and the Russians.

Bearing in mind that nobody is looking for the ruble’s rise except the Russians, it has few chances to gain ground. Neither the Russian government nor the central bank are interested in a strong national currency for the time being, so no help is within reach. The Russian ruble has been falling at a breakneck pace for several trading sessions in a row. As a result, it breached the level of 60 rubles per dollar, making a new low since late January. Besides, it dipped even lower against the single European currency, breaking the level of 67 rubles. The main reason behind the rapid depreciation is thought to be a fall in oil prices while an economic slowdown, escalation of geopolitical tensions, and the Western sanctions are not to be blamed.

A fall in oil prices, in its turn, is contributed to an output growth in the United States. This country ramped up production of crude oil to the record highs. Some analysts anticipate that crude prices will continue to decline so the ruble faces more downside risks. The Russian currency is expected to consolidate near the levels of 60 and 67 against the greenback and the euro respectively.