So, 19:34 GMT, the Euro was at its peak rose to the level 88,02 of the ruble, the dollar was close to 81 ruble. These are the minimum levels for the ruble since the beginning of 2016.
the Ruble depreciates amid another drop in oil prices. From the data exchange ICE, it follows that a barrel of Brent crude was down more than 13% and closer to around $ 25. Last time it cost so much in 2003. The ruble also under pressure declining due to the spread of the coronavirus that causes the performance of all global financial markets.
After the collapse of the OPEC deal+ significantly changed the structure of the oil market, whose members have moved from the balancing of supply and demand to a price war, the analysts of Nordea-Bank Tatyana Evdokimova and Grigory Zhirnov. As a result, oil prices remain significant risks of a further decline.
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Despite the significant weakening of the correlation of the ruble with oil prices in 2016 due to the implementation of fiscal rules and substantial accumulation of foreign exchange reserves, the ruble continues to be sensitive to sharp movements in oil prices especially when the price level is significantly below the cut-off laid down in the budget rule (42.4 percent), state Evdokimova and bold.
According to their estimates, when the price of oil in the range of 20-30 dollars per barrel, the ruble may be in the range of 75-84 of the ruble against the dollar and 82-92 of the ruble in tandem with the Euro, depending on the mood in world markets. In case of sharp approaching the upper limits of this range, the Bank of Russia may resort to intervention in the foreign exchange market to limit the risks to financial stability, analysts say.