Rouble’s rally tests investors’ Russian appetite:
"Of the many quandaries investors must grapple with this year, high on their list is Donald Trump’s relationship with Vladimir Putin. Not far behind is this — should they throw off their instinctive caution about Russia and its president, and push the rouble a lot higher? The turnround in the Russian rouble’s fortunes largely reflects the recovery of oil, the country’s biggest export. That has helped drive the currency higher by nearly a third to about Rbs60 in the past year. Notably, the rouble has outperformed every other major or emerging market currency against the dollar in the last three, six and 12 months. Factors beyond oil’s rebound also explain the rally. High interest rates in Russia make it an attractive carry trade opportunity for speculative investors borrowing in currencies with lower rates, while Mr Trump’s election has thrown up the prospect of a US rapprochement with Russia and the easing of western sanctions."
'via Blog this'
No comments:
Post a Comment