For individuals: Internet bank
Select your city:

VTB Bank call center

+7 (800) 200-77-99
+7 (495) 739-77-99
For general information and enquiries

RUB: back in the black


Yesterday, RUB kicked off on a stronger footing, touching 46.65 against USD. However, it later surrendered some of the earlier gains, with USDRUB closing at 46.85, i.e. the Russian currency appreciated 0.74%. RUB’s recovery was part of a global trend, as EM FX index firmed 0.4% vs. USD, with ZAE up 0.9%, whilst BRL advanced 0.8% and TRY closed 0.4% up. In addition, the recovery of crude oil prices helped, so NOK gained 0.9%. Meanwhile, trading activity remained limited, with the total daily turnover registering USD 3.6bn. The latter, in particular, highlights that exporters are not selling. Speaking in the Duma, CBR Governor Elvira Nabiullina touched briefly on the topic of FX policy. She said that the CBR could execute some ad hoc FX interventions, if it deems them necessary, which would be carried out unexpectedly. Meanwhile, the regulator admitted that RUB’s weakening was to certain extent not just a result of weaker crude oil, but also because of speculative pressure on the market. Separately, Reuters reported that the CBR was prepared to continue limiting the liquidity provision under different instruments. In particular, it highlighted that the regulator was going to keep the limit on the FX swap intact. At the one-week FX repo auction, banks secured just USD 3.7mn (all bids satisfied). The CBR’s representatives interpret sluggish demand at the auction as a sign that there is no US dollar liquidity deficit. We tend to agree that the issue is less pressing than it was in August-September. However, RUB/USD basis continued moving into more negative territory yesterday, which back in August was an early alarm for the FX spot market.

Maxim Korovin, Tatyana Zueva
VTB Capital analyst

ruble, FX market

Back to the list

VTB group news subscribe
  • E-mail subscribe
  • RSS lent
Download the list of cities.....