RUB Poised to Outperform – Danske Bank
Economist at Danske Bank Vladimir Miklashevsky sees the Russian currency picking up further pace in the months ahead.
Key Quotes
“As we expected, the RUB continues to be the best play among oil producers on a rising oil price”.
“Yet, Russia’s currency continues to move closer to its equilibrium level, as its strengthening has been subdued”.
“We continue to be bullish on the RUB, updating the forecast levels to the recent levels in the oil price. We remain bullish in the long run as the free float is protecting Russia’s current account surplus and economy despite probably one more year of slump”.
“Also RUB supportive are the rising oil price prospects, an upward oil futures curve and marginal FX redemptions by the corporate sector, combined with shrinking FX demand from individuals on falling real income”.
(Market News Provided by FXstreet)
