By the end of the working day, the ruble was one of the few EM currencies to maintain positive dynamics against the dollar (the Turkish lira also showed appreciable strengthening in emerging markets). In the afternoon, the oil market supported the domestic currency, where brand quotes added more than 3% in value. In addition, since the beginning of the week, the geopolitical news background related to the situation in Syria has somewhat softened.

Nevertheless, the overall risk appetite of investors in global markets remained weak, and towards the end of the working day, the ruble, like most other EM currencies, was forced to retreat against the dollar into the negative zone. In addition to the strengthening of a basket of major currencies, a noticeable increase in the Japanese yen testified to the continued anxiety of investors in the foreign exchange markets.

However, by evening, the situation had radically changed for the better for currencies in emerging markets and all assets as a result of an emergency reduction in the Fed interest rate by 50 bp.

In the domestic money market, after the end of the February tax period, banks restore liquidity and on Tuesday partially reduced the amount of funds placed on weekly deposits with the Central Bank. So, the Central Bank placed at an auction of 1.78 trillion rubles. against 1.92 trillion rubles placed a week earlier. The difference in deposits will return to the banking system tomorrow, so by the end of the week the correction of interbank lending rates is not ruled out.

Yuri Kravchenko, Head of Banking and Money Market Analysis, Veles Capital Investment Company

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