Goldman Sees Russia Taming Ruble Losses After Plunge to Record - Bloomberg #EuroMaidan

Goldman Sees Russia Taming Ruble Losses After Plunge to Record - Bloomberg:



"Goldman Sachs Group Inc. predicts Russia will contain losses in the ruble as policy makers pledge to curb volatility after ratcheting up interest rates and selling billions of dollars in the currency market yesterday.



Bank Rossii, which ING Groep NV estimates sold as much as $12 billion yesterday, said it will start setting ruble intervention parameters daily, a move that will give the central bank more room to ease swings. Goldman Sachs analysts anticipated a change in tack, writing in a note to clients before the move that Bank Rossii may favor a policy that allows for “discretionary interventions” while predicting the ruble has limited “downside” after sinking to a record low.



Central bankers are stepping up efforts to shore up the ruble as investor demand for Russian assets plummets after President Vladimir Putin’s military forces took over parts of neighboring Ukraine. The ruble weakened 2 percent to 36.5809 per dollar, the biggest decline in 29 months and the worst slump in the world yesterday. Bond yields soared after Bank Rossii raised its key rate 1.50 percentage points."



'via Blog this'