Friday’s trading for the ruble paired with the dollar was quite successful. Already at the opening the pair was below 63.8 rubles. against the previous day’s close of around $64. By the end of the working day, the domestic currency managed to further consolidate its advantage, strengthening to 63.75 rubles. and thus re-ining at a weekly maximum.

A number of factors contributed to the strengthening of the domestic currency. Thus, in general, in most foreign exchange areas of emerging markets by the end of the day there was a correction of the dollar to local currencies, reflecting the renewed hopes of investors to reach a settlement on the trade issue between the United States and China. In addition, some support for the ruble was provided by oil quotes, which added about 0.4% (by brand) to the evening. Also, the dollar was adjusted all afternoon to the major currencies on forex, including losing about 0.3% in pair with the euro (the positive dynamics of the euro on forex kept the single European currency on the Russian market near zero to the ruble, despite the strengthening of the domestic currency against the dollar). Finally, on Friday the next period of mandatory payments to the budget began, although the first payments in the form of insurance premiums provided only a small support to the ruble due to the preservation of fairly comfortable conditions in the local money market.

Yuri Kravchenko, Head of Bank And Money Market Analysis at Velez Capital

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