Rouble reaches three week high against euro dollar basket

Mar 10th, 2009 | By | Category: Rouble News

In response to assurances from the Russian Central Bank and an increase in oil prices, the Russian rouble has reached a three-week high of 39.25 per basket of euros and dollars.

Oil prices increased this week due to geopolitical tensions and the rouble responded on Tuesday 10 March. News of current account surpluses also boosted the outlook for the rouble.

The 39.25 value is the strongest since 12 February and represents a 2% rise over one day. However, experts are remaining cautious, with a trader at the European bank in Moscow stating, “speculators are closing any remaining rouble shorts. We think there is still room for a fall towards the 39 mark. Maybe on those levels we will see demand [for foreign currency] on the part of the central bank.”

So far, the rouble has successfully remained in the 26 to 41 per-basket range that the Central Bank pledged to maintain when it announced it would stop the gradual devaluation of the  currency in January. Liquidity and oil prices have helped this stabilization.

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