USD/RUB: Any relaxing of rules for domestics could lead to a weakening of the rouble, according to ING.

Today, the consensus anticipates a 200 bps Russian rate cut. Besides, the Forex market (FX) will keep an eye on the central bank to release the capital controls

April 29, 2022 - 04:17 PM 286 views

USD/RUB: Any relaxing of rules for domestics could lead to a weakening of the rouble, according to ING.

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© USD/RUB: Any relaxing of rules for domestics could lead to a weakening of the rouble, according to ING.

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Today, the consensus anticipates a 200 bps Russian rate cut. Besides, the Forex market (FX) will keep an eye on the central bank to release the capital controls, which will keep a high depreciation pressure on the rouble currency, as stated by the economists in the ING report.

In light of the rouble's strength, it will be interesting to observe if the central bank relaxes any capital regulations.

The Russian central bank is widely expected to cut interest rates by 200 basis points to 15% by today. As the USD/RUB is trading at an artificially low 72, the interest rate cut is expected now. This is not forced by any natural buyers and it continues selling the energy foreign market (FX) receipts.

There is no change anticipated in control of the foreign community, but it propelled the foreign market (FX) sales for the Russian export community. Recently, it has been allured.

Any relaxing of rules for domestics could cause the rouble to weaken, indicating that Russian authorities want the rouble to be weaker for fiscal reasons."

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