28 Jul 2014
USD/RUB seen at 36.0 in six months - UBS
FXStreet (Córdoba) - The ruble depreciated on the back of further sanctions on Russia. Nevertheless, the UBS analyst team is keeping USD/RUB forecasts unchanged as they expect the central bank to hike rates and counteract the fall of the currency.
Key Quotes
“After the announcement of further sanctions on Russia, the ruble depreciated to levels around 35.0 against the USD”.
“News updates might induce more volatility, but we do not expect a sell-off due to counteracting measures by the central bank – lately again illustrated by the 50bps rate hike”.
“Although it is expected to stabilize the exchange rate, the long-term outlook points toward renewed weakness”.
“We are keeping our three-, six-, and 12-month forecasts at 35.0, 36.0, and 36.5, respectively”
Key Quotes
“After the announcement of further sanctions on Russia, the ruble depreciated to levels around 35.0 against the USD”.
“News updates might induce more volatility, but we do not expect a sell-off due to counteracting measures by the central bank – lately again illustrated by the 50bps rate hike”.
“Although it is expected to stabilize the exchange rate, the long-term outlook points toward renewed weakness”.
“We are keeping our three-, six-, and 12-month forecasts at 35.0, 36.0, and 36.5, respectively”