FX.co ★ Russian ruble holding higher firmly

The Russian economic headlines keep screaming that the national currency is not going to retreat! Some locals hope that the ruble will return to the former exchange rate of 35 rubles per US dollar. Still, even if the Russian currency fails to reach this level, its heroic resilience impresses.

The ruble is trading at 58.68 against the US dollar and at almost 69 against the euro. Many Russians wonder why the local currency does not grow amid rising crude prices. Oil prices are confidently advancing, trading at about 63 dollars per barrel; while the ruble is holding at the same level where it stood when crude was worth 38 dollars per barrel. However, some experts remain optimistic. The Russian finance ministry once again failed to sell government bonds (OFZs), though the securities volume is relatively small.

During the second OFZ auction of 20 billion rubles, the authorities managed to issue only 5 billion rubles. The most part of it was sold to non-locals, which means the population does not trust these securities much. Still, one should hope that the ruble sales to exporters, which are getting ready for the upcoming tax period, will support the Russian currency.