USD/RUB drops to fresh 2017 lows near 56.00

The Russian currency is gathering extra traction during the second half of the week, dragging USD/RUB to print fresh YTD lows in the 56.00 neighbourhood.

USD/RUB weaker on Brent gains

RUB picked up further pace as of late in response to the sharp rebound in crude oil prices, with the barrel of Brent crude regaining the $52.00 mark and beyond, up more than 5% since Monday’s lows in the vicinity of the critical $50.00 mark.

Gains in crude oil prices have helped RUB to clinch fresh tops vs. the buck in the low-56.00s, levels last seen in early July 2015, recording at the same time its second straight week with losses despite the renewed buying interest surrounding the Dollar.

In the data space, US Q4 GDP showed the economy expanded at an annualized 2.1%, up from 1.9% previous. In Russia, the weekly report on FX reserves held by the CBR rose to $399 billion from $395.7 billion.

USD/RUB levels to watch

At the moment the pair is losing 0.84% at 56.13 and a break below 56.02 (2017 low Mar.30) would aim for 53.02 (low Jun.18 2015) and then 49.06 (low May.18 2015). On the other hand, the next hurdle aligns at 57.13 (high Mar.29) followed by 57.84 (20-day sma) and finally 58.19 (high Mar.22).