USD/RUB keeps highs near 58.30, USD, Brent on focus

The Russian currency remains on the defensive vs. its American counterpart at the end of the week, with USD/RUB probing daily highs in the 58.20/30 band.

USD/RUB up on USD-buying, comments

RUB is prolonging its weekly decline after clinching fresh 19-month tops vs. the buck earlier in the week around 56.60, levels last traded in July 2015.

RUB lost further ground in response to earlier comments by Russian economic minister, who stressed that the currency is expected to weaken in the near future prior to some stabilization. In addition, the minister argued that the Russian central bank (CBRF) will stick to the floating exchange rate.

RUB weakness as of later has been also driven by the softer tone in crude oil prices, with the barrel of Brent crude losing ground fir the third session in a row so far today, testing the $55.40 area.

In the data space, Russian Producer Prices rose more than expected 3.3% MoM in January and 12.7% over the last twelve months.

USD/RUB levels to watch

At the moment the pair is gaining 1.10% at 58.23 facing the next resistance at 59.00 (20-day sma) followed by 60.29 (55-day sma). On the downside, a breakdown of 57.49 (low Feb.17) would aim for 57.02 (low Feb.16) and finally 56.57 (2017 low Feb.15).