Friday, 23 January 2015

Ruble Firms as Oil Price Bounces on News of Saudi Arabian King's Death

The ruble strengthened Friday, buoyed by a bounce in global oil prices, expectations that exporters will soon convert hard currency into rubles and foreign investors taking advantage of high Russian interest rates.
At 0755 GMT, the ruble was around 0.9 percent stronger against the dollar at 63.57 and gained 1.3 percent to trade at 72.15 versus the euro.
"Sentiment towards the ruble has changed, first of all due to European QE (quantitative easing), since the ruble is interesting for carry trade. I think the dollar/ruble pair could fall back to around 60-61," said a currency dealer at a large Western bank in Moscow.
The European Central Bank said Thursday it would buy 60 billion euros of bonds a month starting in March, boosting Russian assets.
A carry trade is a strategy whereby an investor borrows money at a low interest rate to invest in an asset that is likely to provide a higher return. Russia's key interest rate is at 17 percent, more than 10 percent higher than in most Western countries.
Read more Click here / www.trade4x.net

 

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