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Russian Ruble Stands Strong Amid Global Dollar Struggles and Market Volatility

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BNN Correspondents
New Update
Russian Ruble Stands Strong Amid Global Dollar Struggles and Market Volatility

The Russian ruble has been showing a strong performance, gaining 5% against the dollar in both October and November and stabilizing in the exchange rate zone of 88-90 rubles per dollar. This stability has emerged in the face of past volatility, yet technical indicators hint at a potential minor retreat for the ruble, with a potential rebound for foreign currencies in December.

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Ruble's Resilience Amid Global Dollar Struggles

The global dollar is grappling to fend off further decline. International bond yields have been touching quarterly lows, indicating expectations for a gentler approach to monetary policy from the Federal Reserve. Meanwhile, the Russian Central Bank is set to make a crucial decision on interest rates, which will significantly influence the ruble's trajectory.

Oil and Gold: Volatility and Peaks

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Brent crude oil continues to be volatile, especially in the run-up to decisions from OPEC+. Conversely, gold prices are lingering near six-month highs, suggesting the possibility of attaining historical peaks. The Russian rouble has found support from capital controls, high oil prices, and expectations of a further interest rate increase this month.

A Look at the Stock Market

The US stock market has recently hit autumn highs, inching closer to annual records, and an immediate downturn is not anticipated despite signs of overbuying in the market. Overall, the financial climate indicates a potential upper range movement for the ruble in December, influenced by tax periods and holiday spending. However, significant surges beyond current levels are unlikely.

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