Wednesday, 11 November 2015 18:10
MOSCOW: The Russian rouble was flat against the dollar on Wednesday but edged down against the euro, holding ground after falling last week on expectations of higher US interest rates. At 0815 GMT, the rouble was unchanged at 64.56 per dollar and down 0.3 percent to 69.42 versus the euro.
The rouble has been little changed since the beginning of the week, having fallen almost 2 percent against the dollar on Friday when strong US jobs data increased expectations of higher US interest rates next month.
“The dollar/rouble (rate) continues to consolidate because of the absence of drivers,” InstaForex analyst Igor Kovalev said in a note. Analysts said dollar trading was subdued globally because of a Veterans’ Day holiday in the United States.
VTB Capital analysts said they regarded the Russian forex market as balanced, with the rouble likely to stay in the range of 63-65 against the dollar assuming oil stays in the $ 47-50 per barrel range.
International oil benchmark Brent crude oil was down 0.5 percent at $ 47.2 a barrel on Wednesday.
Macroadvisory analyst Chris Weafer said in a note that the oil price is likely to drift down into the mid-to-low $ 40s per barrel by year-end as traders contemplate the return of Iranian oil to the market next year.
“That is expected to further pressure the rouble exchange rate.
We maintain our year-end target of 70 roubles per dollar,” he said.
Russian share indexes drifted down, following Asian markets after lacklustre Chinese industrial output data.
The dollar-denominated RTS index was down 0.7 percent to 848 points, while the rouble-based MICEX fell 0.5 percent to 1,738 points.
