Moscow. June 16. INTERFAX.RU Dollar rises, the Euro, by contrast, is cheaper on the Moscow exchange on Tuesday evening; ruble stable against the currency basket in terms of the multidirectional dynamics of the major pairs, following the movement of the Euro against the dollar in the global market.
the dollar was 69,68 RUB at 19:00 GMT, which is 10 cents above the closing level of the previous trading session. The Euro was worth 78,46 RUB., down by 26.25 penny. The cost of the currency basket ($0.55 and EUR0,45) fell by 6.3 cent — up to 73,63 ruble.
according to experts “Interfax-CEA”, the ruble is trading mixed in the major pairs on evening trades after the Euro to the dollar in the global market. The U.S. currency sharply rose against most world currencies on the background of the semi-annual report on monetary policy Chairman of the Federal reserve system Jerome Powell to the Senate banking Committee.
“While the society is not confident that the disease was brought under control, a full recovery is unlikely,” he said, noting that “the level of production and employment remain much lower than before the start of the pandemic, and there is a high degree of uncertainty regarding the time and strength of the US economic recovery”.
According to Powell, the measures of direct state aid “is not only to support households and business, but also to limit the lingering damage to the economy”. “The longer the crisis lasts, the higher the likelihood that prolonged damage due permanent loss of jobs and closure of businesses,” he added.
the fed expressed concern about the impact of the crisis on small business. He stressed that small and medium-sized enterprises are the “heart” of the American economy. “If small and medium enterprise becomes bankrupt due slow recovery of the economy, we lose more than just the enterprise”, — said the head of the Federal reserve.
He also noted that the current economic downturn could exacerbate the problem of inequality in the country, as “households with the lowest income faced the strongest decline of amusement, and the loss of jobs among African Americans, Spanish speakers and women were higher than in other groups.”
According to the forecast of Powell, US inflation for “some time” will be below the target regulatory level at 2%. On Wednesday, Powell will appear before the Committee on financial services of the house of representatives.
oil Prices are rising on Tuesday evening as traders continued to assess signals of decreasing production and the prospects for recovery in demand due to the gradual removal of quarantine restrictions.
the Cost of the August futures for Brent on London exchange ICE Futures at 19:01 Moscow time UweLICIES by 1.11% to $40,16 per barrel. WTI futures for July in electronic trading on the new York Mercantile exchange (NYMEX) by this time has risen in price for 0,51% — to $37,62 per barrel.
the Transaction for the reduction of oil production by OPEC countries+ in may was performed in 89%, according to the monthly report from the International energy Agency (IEA). At the same OPEC countries fulfil their obligations by 86% of the country non-OPEC 94%.
According to the IEA, global oil supply will be reduced by 7.2 million barrels per day in 2020, and then increase by 1.7 million barrels per day in 2021. Thus, the IEA forecasts growth in oil demand next year to 5.7 million barrels per day.
As told in interview “to Interfax” the chief of Department of trust management of the company “UA KSP the Capital” Dmitry hamsters, after a sharp correction in last Thursday’s pre-holiday domestic foreign exchange market during a significant part of Tuesday showed optimism.
“Confidence in the buyers of risky assets, including the ruble in the first half of the day gave the fed’s decision on early redemption of corporate debt and plans trump to invest up to an additional $1 trillion in infrastructure. Oil after the correction from highs in the $43 per barrel Brent is trading around $40. Although the overcrowding of the oil reservoir is retained, the decisions of Iraq and Saudi Arabia to reduce production and, accordingly, deliveries, provide quotes of support. A couple of “dollar-ruble” has moved away from local minima close to 68 rubles per dollar and is trading close to 70 rubles per dollar. The main factors for ruble continue is a Friday meeting of the Central Bank (we believe justified the rate reduction by 50 b.p.), as well as the geopolitical situation and the process of release from quarantine,” — said hamsters.
“After a steady decline of the “dollar-ruble” a day earlier, the bears on Tuesday failed to build on their success, which prevented the situation on the international currency market, where the U.S. currency moved to stable growth during the evening sale. Thus in the coming days the dollar could come under pressure that will keep it in the range of 67.5−70 rubles/$1. In the case of a significant improvement in the external environment, we expect attempts to test the us currency lower boundary of this corridor,” says chief analyst at Promsvyazbank Bogdan Zvarich.
At the end of the index session of the Moscow stock exchange (part of the session dollar calculations “tomorrow” in the period from 10:00 to 11:30 Moscow time), the Bank of Russia lowered the official rate of the dollar in the June 17 64,26 pennies to RUB 69,7524., and decreased by 10.17 Euro cents, to 79,0434 RUB.
Weighted average dollar exchange rate on session calculations “tomorrow” at 19:00 Moscow time dropped to a penny of 60.61 and��made 69,6015 RUB trading Volume in dollars this time amounted to $3 billion 547,064 million, of which $700,582 million on transactions with settlements “today” and $2 billion 846,482 million on transactions with calculations “tomorrow”.
the Weighted average Euro rate calculations “today” has decreased by 15.66 cents, to 78,941 RUB for Euro. Weighted average rate of Euro calculations “tomorrow” at 19:00 declined by 40.65 kopecks and amounted to RUB 78,654 trading Volume of the Euro by this time amounted to EUR679,266 million, of which EUR78,941 million on transactions with settlements “today” and EUR500,953 million on transactions with calculations “tomorrow”.
the Bank of Russia on Tuesday, 16 June, held its traditional weekly Deposit auction, in which banks placed in the CBR 1 trillion 320 billion (with the limit of 1 trillion 320 billion rubles and demand 2 trillion 819,5 billion rubles) on average at a rate of 5.24% per annum. For weekly Deposit auction held on 9 June, banks posted $ 1 trillion 460 billion (with the limit of 1 trillion 460 billion rubles and demand 2 trillion 16.8 billion rubles) on average at a rate of 5.41% per annum.
the CBR on 11 June sold the currency to 10.2 billion rubles, follows from the data of the Bank of Russia. A day earlier, the volume of sales of foreign currency amounted to 10.2 billion rubles. On 9 June, the CBR sold currency to 10.3 billion rubles, June 8 — 10.1 billion.
Rates of short and medium term (1-6 months) interbank loans declined on Tuesday compared to previous trading day in anticipation of the meeting of the Central Bank of the Russian Federation on Friday, which will address the issue of reduction of the key rate. Rate MosPrime Rate loan “overnight” fell by 5 basis points (b.n.) — to 5.29% per annum, the rate of MosPrime Rate on loans for seven days dropped by 8 b.p. — to 5.4% per annum. The rate for a period of 1 month has decreased by 9 b.p. to 5.38% per annum, the rate for a period of 3 months decreased by 7 b.p. — to 5.36%, the rate for a period of 6 months retreated 8 b.p. to 5.38% per annum.
“On the local interbank market, the Bank of Russia reduced the limit on the weekly Deposit auction (to 1.32 trillion rubles, as against 1.46 trillion roubles a week earlier). Banks showed increased interest in the location of the weekly means and the volume in the bids more than twice exceeded the limit of the Central Bank, as the funds will return after the meeting of the regulator on Friday, which is expected to lower the key rate”, — said head of Department of the analysis of banks and money market IK “Veles Capital” Yuri Kravchenko.
