6 Mar 2015
RUB could see its recovery intensified – BAML
FXStreet (Edinburgh) - In the opinion of analysts at BAML, the Russian currency could gather further traction along with a recovery in crude oil prices and easing geopolitical risks.
Key Quotes
“RUB has recovered with higher oil prices and emerging potential for a more lasting ceasefire”.
“However, it has lagged sovereign spreads and OFZ bonds and we see scope for further recovery if oil and politics remain stable”.
“Near-term, the Moodys downgrade could cause some weakness after the February gains”.
“Aside from the lingering political risks arising from Ukrainian crisis risks, the remaining macroeconomic risks appear fairly balanced, or at least well priced by current valuations, in our view”.
“The existing policy framework and RUB volatility in particular should help to address most of the remaining issues with the sustainability of external debt, fiscal balances, and sharp economic weakness in early 2015”.
Key Quotes
“RUB has recovered with higher oil prices and emerging potential for a more lasting ceasefire”.
“However, it has lagged sovereign spreads and OFZ bonds and we see scope for further recovery if oil and politics remain stable”.
“Near-term, the Moodys downgrade could cause some weakness after the February gains”.
“Aside from the lingering political risks arising from Ukrainian crisis risks, the remaining macroeconomic risks appear fairly balanced, or at least well priced by current valuations, in our view”.
“The existing policy framework and RUB volatility in particular should help to address most of the remaining issues with the sustainability of external debt, fiscal balances, and sharp economic weakness in early 2015”.