The main story in the currency markets this week is the free fall in the ruble. It has been accompanying oil in its sharp decline, but this week, it is taking a much steeper plunge. Let’s take a look at the USD/RUB.
The USD/RUB has been bullish, breaking above 60 for the first time. In the first 2 sessions of this week, we have already seen a rally never seen before. The Russian Central Bank intervened by raising its key interest rate from 10.50% to 17.00% to combat inflation. However, after a brief pause, the ruble fell even harder as the USD/RUB accelerated to 78.50 by the US part of the 12/16 session. The ruble will probably continue to be pressured until oil prices can stabilize. For now, USD/RUB is establishing support at 65, 57.50, and 55.00.
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