USDRUB Analysis – December 15, 2023

USDRUB Fundamental Analysis

USDRUB Fundamental Analysis – In December, the Russian ruble remained stable, staying below 90 against the USD. This stability comes with support from the Central Bank of Russia, which raised its key interest rate to 16% for the fifth consecutive month. The hike is a response to ongoing inflation pressures, including labor shortages and persistent high lending rates. Since July, the bank has increased the rate by a total of 850 basis points. The Central Bank also stressed the need for a prolonged restrictive policy to bring inflation back to the 4% target.

Additionally, the ruble’s strength is bolstered by capital controls implemented by the government. A notable measure includes a decree by the President mandating 43 export companies to convert some of their foreign earnings into rubles. Moreover, a weaker dollar, influenced by the Federal Reserve’s signals of ending monetary tightening and considering three interest rate cuts for 2024, also supports the ruble.

USDRUB Fundamental Analysis

USDRUB Fundamental Analysis – Daily Chart – Bloomberg