US dollar and Euro grow on “Moscow stock exchange” on Friday evening; the ruble weakened against the currency basket, reflecting the General decrease in investor interest in risky assets.
The US dollar made up 58,11 rubles/$1 at 19:00 Moscow time, 39.5 kopecks above the closing level of the previous trading session (the dollar rose above 58 rubles/$1 for the first time since March 19). While the Euro was worth of 71.31 rubles/EUR1, up 69 cents. The cost of the currency basket ($0.55 and EUR0,45) rose by 52,78 pennies to 64,05 of the ruble.
According to experts of “Interfax-CEA”, the ruble weakened against the dollar and the Euro because of the new wave of trade between the USA and China, which negatively affects all risky assets. On Thursday, the President of the United States Donald trump has instructed U.S. trade representative to prepare a plan for the imposition of duties on goods of Chinese exports worth $100 billion in addition to the previous measures. In response, on Friday, the Ministry of Commerce of China said that Beijing does not want a trade war, but ready to fight.
The U.S. Treasury on Friday announced that, after consultation with the state Department, the us administration imposed sanctions against seven Russian businessmen, 14 companies, 17 government officials of the Russian Federation, and also against one of the companies of the Russian Federation on the arms trade and associated Bank.
The press release noted that these sanctions are imposed according to the results released in January 2018, “the Kremlin report”, which, in turn, is the implementation adopted in the US in early August, 2017 law “On counteraction to opponents of the United States through sanctions” (Countering America’s Adversaries Through Sanctions Act, CAATSA). In a statement the head of Finance Stephen Mnuchin stated that the sanctions affect a number of persons that are directly benefited by the activities of the authorities of the Russian Federation for their own purposes, but also are themselves involved in “the promotion of the Russian harmful activity.”
Oil reference marks are cheaper on Friday and completes a substantial decrease in the current week on fears that the escalation of tensions on trade issues between the US and China will reduce the pace of global economic growth and hit fuel demand.
The price of the June futures for Brent on London exchange ICE Futures at 19:01 Moscow time has decreased on 1,38% – to $67,39 per barrel. The cost of the futures on WTI for may to trading on the new York Mercantile exchange (NYMEX) decreased by this time by 1.84% to $62,37 per barrel. Since the beginning of the week Brent fell by 3.2%, WTI – by 3%.
At the end of the index session of the Moscow exchange (part of the session dollar calculations “tomorrow” in the period from 10:00 to 11:30 Moscow time, the CBR raised the official dollar rate for the weekend and Monday by 25.36 cents, to 57,8332 rubles/$1, and increased by 11.43 Euro cents, to 70,7069 RUB./EUR1.
The weighted average dollar exchange rate calculations “today” at the auction of the Moscow exchange rose by 24.64 penny against Thursday and totaled 57,8368 RUB/$1. Weighted average dollar exchange rate on session calculations “tomorrow” to 19:00 Fridays Moscow time rose by 24.41 kopecks and amounted to RUB 57,8894/$1. Trading volume in dollars to this point was $5 billion 075,178 million, of which $1 billion 415,178 million on transactions with settlements “today” and $3 billion 660,283 million on transactions with calculations “tomorrow”.
The weighted average Euro rate calculations “today” has grown by 14.08 kopecks relative to Thursday, to 70,7334 RUB./EUR1. Weighted average rate of Euro calculations “tomorrow” to 19:00 Fridays Moscow time increased by 23.53 kopecks and amounted to 70,863 RUB./EUR1. The trading volume of the Euro by this time amounted to EUR728,959 million, of which EUR257,421 million on the transaction, “today” and EUR471,538 million on transactions with calculations “tomorrow”.
Market rates short-term and medium-term (1-6 months) interbank loans remained little changed on Friday compared with the previous trading day. Rate MosPrime Rate loan “overnight” rose 4 basis points (b.n.) – to 7.23% per annum, the rate of MosPrime Rate on loans for a period of seven days has remained at the same level of 7.27% per annum. Bets 1, 3 and 6 months retreated 1 b.p. each – to 7.32%, 7,28% 7,28% per annum respectively.
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