Russia Ruble (RUB USD) Crash Puts Central Bank in Bind - Bloomberg:
The Bank of Russia stepped in to slow the ruble’s plunge, highlighting the challenge it faces as it tries to cushion a double blow from coronavirus and the plunge in oil prices.
While many central banks are slashing rates, the most the Bank of Russia is expected to be able to do at its rate meeting Friday is hold steady. Options markets are betting rate hikes are possible within the next three months as the ruble traded near its weakest level in four years.
The ruble rebounded on Thursday after the central bank said it will begin additional foreign currency sales if the price of Urals crude is below $25 a barrel, a level it has already reached. This could mean about an extra $800 million of sales a month, according to VTB Capital.
The Bank of Russia stepped in to slow the ruble’s plunge, highlighting the challenge it faces as it tries to cushion a double blow from coronavirus and the plunge in oil prices.
While many central banks are slashing rates, the most the Bank of Russia is expected to be able to do at its rate meeting Friday is hold steady. Options markets are betting rate hikes are possible within the next three months as the ruble traded near its weakest level in four years.
The ruble rebounded on Thursday after the central bank said it will begin additional foreign currency sales if the price of Urals crude is below $25 a barrel, a level it has already reached. This could mean about an extra $800 million of sales a month, according to VTB Capital.
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