Crude Oil Provides Support for Ruble Rally

The Russian currency benefited from a new wave of confidence among traders that forced commodities rates up, helping Russian assets to be more attractive in global markets, consequently influencing positively the rates for the ruble.
After Bank of Russia lowered interest rates in the country, the number of investors looking for funding through lends in the country increased, providing support for the ruble to gain versus most of 16 main traded currencies this week, as emergent markets have been the most benefited from this new wave of confidence that pushed investors to purchase riskier assets in countries like Russia and Brazil. Being a country rich in natural resources, the rise in the price of crude oil and other commodities rates also influenced positively the outlook for the Russian currency and economy, since regions that are already experiencing a solid recovery like the Eurozone are the main destinations for Russian primary exports.
According to analysts, the sixth cut in rates in a five month period for refinancing is attracting investors to inject money in Russia, since this measure to stimulate the country’s economy has been accepted positively by the world financial community. The constant crude oil rate climbs also help forecasts to indicate that the ruble will remain strong towards the end of the year.
USD/RUB traded at 30.3245 as of 12:21 GMT from a opening rate today of 30.4855.

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