Ruble in Free Fall Even After a Dramatic Rate Hike

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Ruble in Free Fall Even After a Dramatic Rate Hike

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.

Previous Post by Author: USD/JPY Sputtering; EUR/USD Uncoiling from Triangle

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.