Russian ruble reinforced on the US dollar before the rate decision | Einsmark news

Moscow, – The Russian ruble strengthened against the US dollar on Wednesday, as markets focused on the central bank’s key rate decision later this week, although analysts said any Dovish signals could cause a weakening of the currency. By 1045 GMT, the ruble was 0.8% higher at 78.35 per US dollar, Lseg data based on quotes without a counter. The ruble has risen by more than 40% against the dollar so far this year. On June 2, Reuters’ poll of 26 economists showed that the central bank is expected to hold its key interest rate at the council meeting on June 6 at 21%, but that he could mitigate his rhetoric and signal rate cuts later in the year. However, a growing number of analysts predicts that the central bank, which is under pressure from businesses over an economic slowdown and the high cost of lending, could begin to lower the rates at Friday’s meeting. “The geopolitical factor has temporarily taken a back seat, and participants in foreign exchange markets are now preparing for the most important interest rate decision of the central bank,” BCS broker analysts said. The Finance Ministry has published Forex Transactions Figures for the National Wealth Fund, which implies an increase in the net foreign exchange sales by the state, providing more support for the ruble. Against the Chinese Yuan, the ruble was 0.3% higher at 10.87 on the Moscow Stock Exchange. Russia’s central bank uses Yuan for foreign exchange interventions, and it is the most traded foreign exchange in Russia. Analysts believe that the ruble is fundamentally overvalued and sees that the Russian currency is weakening to 97.5 to the dollar in one year. This article was generated from an automated news agency feed without edits to text.