USD/RUB gained over 0.7% on Tuesday while the MOEX benchmark stock index plunged to lows not seen since March 25th 2021 amid continuing geopolitics-related concerns and worsening health situation due to the rapid Omicron spread.
The Russian currency has been facing geopolitical pressure since last October due to Russia’s military build-up near Ukraine. Moscow has expressed concerns about NATO’s expansion, while Western nations are concerned about a potential Russian invasion of Ukraine.
“Indeed, the situation remains highly uncertain and fluid. If geopolitical risks did ease, however, expect a bounce,” BCS Global Markets said in an investor note.
Yesterday the rouble managed to recoup a small part of recent losses against the dollar after German business newspaper Handelsblatt reported Western governments were no longer considering cutting Russia off from the SWIFT global payments system. Still, the report was rejected by a spokesperson for the White House National Security Council.
Meanwhile, the rouble-based MOEX stock index slipped to a fresh ten-month low of 3,450.40 on Tuesday and was last down 2.14% on the day to 3,484.05, despite that Brent oil was trading near over seven-year highs.
Brent crude oil, a global benchmark for Russia’s main export, was gaining 1.01% on Tuesday to $87.40 per barrel. Earlier it climbed as high as $88.08 per barrel, a level not seen since October 14th 2014.
As of 10:06 GMT on Tuesday USD/RUB was advancing 0.72% to trade at 76.6518, while moving within a daily range of 76.0180-76.7069.
The Forex pair has remained not far from the January 6th high of 77.3183, its strongest level since April 15th 2021. The exotic currency pair has appreciated 2.47% so far in January, following another 0.77% gain in December.
Daily Pivot Levels (traditional method of calculation)
Central Pivot – 76.1924
R1 – 76.6886
R2 – 77.2716
R3 – 77.7678
R4 – 78.2639
S1 – 75.6094
S2 – 75.1132
S3 – 74.5302
S4 – 73.9471