MOSCOW: The ruble fell over 10 percent on tracking tumbling prices for oil, Russia’s major export. The Moscow Exchange was closed when international oil benchmark Brent firmed above $50 a barrel, helped by an unexpected fall in U.S. oil stocks.
The ruble strengthened on Thursday morning after a firming of the oil price on Wednesday, following heavy falls in the Russian currency on Monday and Tuesday when crude prices tumbled.Moscow the ruble was 1.8 percent stronger against the U.S. dollar at 62.75, and 1.6 percent stronger at 73.70 against the euro.
Brent was down slightly on Thursday but holding just above $51 per barrel.USD/RUS can’t find the strength to go below the 60-level, and it is all the fault of the Brent price,” Forex Club analyst Alyona Afanasyeva said in a note.However … if the level of $50 a barrel turns out to be a sufficiently strong support and can lead to a strengthening of the Brent price, it’s entirely possible to expect the return of the (dollar/ruble) pair below 60,” Afanasyeva said.
The Russian currency fell about 40 percent against the dollar last year, hurt by the falling oil price and by Western sanctions over Ukraine. It has swung wildly in recent weeks after being floated by the Central Bank.
