The ruble recovered on Friday, paring heavy losses as investors anticipated possible action by the Central Bank to halt a slide that could destabilize Russia's financial system. With the ruble appearing to be in free-fall in morning trade, some analysts said the country was already in the grip of a currency crisis. It fell over 3 percent against both the dollar and the euro following similar falls on Thursday, but talk of an emergency Central Bank meeting saw it recoup its losses in the afternoon. The Central Bank said late on Friday it was willing to increase its forex interventions to defend the ruble "at any moment" and to deploy other instruments in its policy arsenal to support the currency. The bank said that while several fundamental factors had driven the ruble lower in recent months, it didn't regard a further fall in the ruble as necessary to achieve balance of payments equilibrium. Prior to the Central Bank statement, traders said speculators who had opened long dollar positions were closing them in case the Central Bank took extraordinary measures to support the currency. Rising prices for Brent crude oil also provided some relief for the ruble.
see art.in:Ruble and Russia
INC News, 07/11/2014
No comments:
Post a Comment