The dollar exchange rate continues to fall on MICEX, but the Central Bank has not intervened

Friday, October 18, 2019

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The dollar exchange rate continues to fall on MICEX, but the Central Bank has not intervened. At the opening, the rate was 27.9-27.94 rubles per dollar, and after 1pm Moscow time, the dollar fell to 27.89-27.9 rubles. The official rate of the dollar for tomorrow has decreased by 8.52 kopecks to 27.9103 rubles per dollar. According to market participants, the Central Bank has not entered the trading session today after it purchased at least $6-7 billion in currency from banks last week. Currently there is some equilibrium on the currency market, Armen Asaturyan, a Mezhprombank dealer, said. Nevertheless, "the Russian market is very delicate," Mr. Asaturyan continued, it "expects news," macroeconomic indicators from the U.S., and could "tumble" if there is a relevant bid to purchase the American currency. In particular, the consumer prices index in America will be published on Thursday. An increase in this index means the dollar will fall. Moreover, the dynamics of the dollar and euro rates can be influenced by U.S. unemployment data and industrial output data from Europe, experts noted. Late on Tuesday, the U.S. Federal Reserve increased interest rates to 2.25%, but this did not influence the dynamics of the dollar in Russia on Wednesday because the prices had already been set, said Mr. Asaturyan. Before the Federal Reserve's move, the dollar was mainly purchased on world currency markets, the Prospekt investment company noted. However, higher interest rates closed some longs on the dollar. As a result, the euro rose to $1.332 per euro, and the dollar exchange rate to the ruble dropped below 28 rubles per dollar, experts said.

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