The dollar rose sharply after it forecast a. the weakening of the ruble

Maxim Oreshkin

Photo: Dmitry Astakhov / TASS

The dollar on the Moscow exchange for the first time in three days rose above 58 rubles. the Euro approached 62 rubles. It happened after the statement of the head of the Ministry Maxim Oreshkin, the readiness to take action in case of continued strengthening of the ruble

Launched this morning is sluggish the strengthening of the dollar and Euro on the Moscow stock exchange changed to a sharp jump in prices after the statement of the head of the Ministry Maxim Oreshkin about the government’s willingness to take prompt action in the case, if the ruble will continue to go up.

“The government continues to monitor closely the situation and, if necessary, will be in the situation to react,” he explained. (quoted by “Interfax”).

The dollar for a few minutes jumped by about 40 COP., up to a maximum level 58,2525 RUB of 65.25 kopecks. above the closing level of the previous trading session. Simultaneously, the Euro has reached 62 rubles, 56 kopecks. above the closing level on February 16.

Above 58 rubles. the dollar rose for the first time since February 14. In comparison with the achieved 15 February eighteen-month minimum (56,55 RUB) grew by more than 2.7%.

Earlier today, Oreshkin said that the government still intends to abandon ongoing Treasury purchases of foreign currency on the domestic market and expressed confidence that the ruble will soon begin to weaken.

“We believe that strengthening [of the ruble], which we see in the market is short-term and not related to fundamental factors. In General, we expect that in the near future there will be some weakening of the ruble, and then its stabilization,” — said the Minister of economic development following the Russian President’s meetings with Ministers (quoted by TASS).

The number of short-term factors that led to the strengthening of the ruble, Oreshkin called seasonal factor in the first quarter, as well as capital inflows, including in the result of privatisation transactions. “These factors play in the strengthening of the ruble,” — said the Minister.

February 15 the reversal of currency trends, in which the dollar and the Euro rose more than the ruble occurred against the background of statements by the press Secretary of Russian President Dmitry Peskov that the issues related to the exchange rate and its impact on the economy, can become part of the discussion at the meeting, Putin Oreshkin. In the report, analysts of ROSBANK it was noted then that this situation shows just how “quick and painful might be a reversal of the market in the event of signs of interference by the Russian authorities.”

Later, the experts of Sberbank CIB have linked the rapid fall of the dollar in the beginning of February 2017 (in two weeks he was falling almost continuously, down 14 days more than 5% and several times updating the eighteen-month minimum) with purchases rubles Rosneft, which needs funds to make payments to minority shareholders of “Bashneft”.

In turn, the press Secretary of “Rosneft” Mikhail Leontyev told RBC that the company’s actions do not could cause a strengthening of the ruble, as it had enough time to attract needed to make payments to minority shareholders of Bashneft rubles and did not go to the foreign exchange market simultaneously.

By 13:42 GMT the dollar on the Moscow stock exchange amounted to 58,1975 Euro — 61,985 RUB.

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