Rouble pushed down on negative day for oil

Jan 26th, 2010 | By | Category: Rouble News

The Russian rouble rose above 30 for the first time in 2010 this week, unhealthy falling nearly one per cent against the dollar to 30.11. The development came as oil prices remained below per barrel and investors turned their sights away from risky currencies.

Analysts commented that any day that's negative for oil can be equated with a weakening of the Russian currency, ailment with the price of the commodity proving the biggest factor in pushing the rouble down.

Moves by the Chinese government to curb lending and cool economic growth have also been singled out for tempering global commodity prices, in turn tempering the rouble and Russia's economy.

At a conference on Monday entitled "Russia and the World Challenges of the New Decade", the country's finance minister acknowledged that the Russian government had allowed the currency to strengthen beyond measure.

The statement by Alexei Kudrin prompted analysts to predict another dip in the rouble rate similar to the one witnessed in December. In that month, the finance minister claimed the currency's devaluation at 2009's outset was half-hearted and should have been more drastic, sending the rouble slumping 5.3 per cent within three days.

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