Rouble becoming attractive againOct 14th, 2009 | By Caroline Clayfield | Category: Rouble News
High interest rates and improvements in the Russian economy have boosted the rouble's attractiveness, according to Barclays Capital.
Reuters reports on the contents of a research note from Barclays analysts, which dismisses previous suggestions of a fresh bout of devaluation for the rouble during the autumn months.
"We had been cautious, opting to stay out of rouble longs since June, but now feel that the emerging macroeconomic and financial stability in Russia argues for being long once again," they state.
"The Bank of Russia will likely lean against appreciation but with the growth outlook next year looking less onerous to us than we had previously thought, the likelihood of devaluation has dropped sharply."
High oil prices and tentative signs of economic recovery are identified as some of the reasons behind the rouble's gain of six per cent against the dollar since the beginning of this month.
On Thursday this week (24th September), Russia's central bank intervened in the currency market to purchase dollars and stem appreciation of the rouble.
The bank had not bought dollars since early June, when it made a purchase as part of moves to limit substantial exchange rate swings in either direction.