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Ruble is falling in price after the leap caused by the OPEC agreement

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Ruble is falling in price after the leap caused by the OPEC agreement

Ruble is falling in price after the leap caused by the OPEC agreement
September 29
12:30 2016

The growth of the Russian currency after the trading session has become due to the ruble reaction to the OPEC decision on the limitation of oil production. However, the ruble has started the trading with the restrained decline on Thursday.

By the early afternoon the US dollar has increased against the ruble by 0.12 percent, being traded at 63.12 rubles. The euro has amounted to 70.86 rubles. This figure is 0.25 percent higher than the level of the closing session on Wednesday.

After the Wednesday news that OPEC decided to limit the production since November, the ruble has immediately reacted. It costs below the figure of 63 rubles per $ 1. On Wednesday the minimum mark was 63.05 rubles.

The analytical note of Rosbank says: “The Russian currency has quoted below 63 rubles per dollar for the first time since mid-July.  However, the prospect is defined by the confidence to a new level of commodity prices: the slightest skepticism is able to return the quotes of the dollar-ruble pair to the interval of 64-66 rubles. “

Brent crude oil has fallen in price by 0.55 percent, trading at $ 48.42 per barrel. A day earlier it showed the growth, which was the reaction to the OPEC statement that promised to cut the oil production.

“The further growth will depend on the effectiveness of the agreement implementation regarding the restriction of the production. Apart from commodity currencies, the currencies of developing countries have responded to the news without enthusiasm. In our opinion, this is due to the fact that the implementation of the reached agreement in the medium term will certainly lead to an increase in fuel prices.  This can result in the acceleration of inflation in the US, and, in its turn, all things being equal, will increase the likelihood of tighter Fed monetary policy “- say the experts at VTB Capital.

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