Russia?s Ruble Dips On Crude Oil Concerns

Published: 24 Jul at 5 PM Tags: Euro, Dollar, America, Eurozone, New Zealand Dollar, Australia, New Zealand, USA, Canada, China, Germany, Russia, Switzerland,

During the local session the Ruble weakened to 32.38 against the US Dollar and 37.0823 against the Russian central bank’s Dollar/Euro basket.

The currency fell as crude oil, Russia’s major export, declined by 0.9 per cent to roughly 106.32 Dollar’s per barrel.

Emerging-market currencies like the Ruble were also adversely affected by the news that China’s manufacturing sector contracted by more than anticipated in July. A gauge of manufacturing PMI for the Asian nation dropped to 47.7 in July from 48.2 in June, rather than stagnating as economists had expected.

In response to the Ruble’s movement Moscow-based forex trader Artem Roschin stated: ‘investors are living in fear of the oil price drop and are expecting the Ruble to weaken further as we near the end of the month.’

In other currency news, the Euro was able to climb against the majority of its most traded peers during the European session on the strength of better-than-anticipated manufacturing and services data for Germany and the Eurozone.

Canada’s Dollar was also trading strongly as yesterday’s significant rise in retail sales boosted the nation’s economic outlook and supported the commodity driven currency.

Australia and New Zealand’s Dollars remain softer as a result of the negative news from China. The trade prospects of both South Pacific nations were dented by the news, but the ‘Kiwi’ could fluctuate further in response the Bank of New Zealand’s rate decision.

Meanwhile, data compiled by the Swiss National Bank showed that the Swiss Franc is still 11 per cent overvalued. The report means that the central bank is likely to maintain its current policy methods despite the recent improvements in the Eurozone’s economic performance.
As of Wednesday, 24th July 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1607, GBP USD exchange rate was 1.5317, GBP NZD exchange rate was 1.9206, GBP AUD exchange rate was 1.6741, GBP CAD exchange rate was 1.5795, GBP CNY exchange rate was 9.3984, GBP RUB exchange rate was 49.584, and GBP CHF exchange rate was 1.4361.

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