Chief Analyst at Danske Bank Jens Sorensen assessed the recent sharp sell off in the Russian currency.
Key Quotes
“It was a black Wednesday for the RUB yesterday as it saw an intraday drop of 3.2% against the USD and versus the EUR to the lowest level since November 2016 after the full text of the US sanctions ‘bill from hell’, introducing harsh anti-Russia sanctions, was leaked to the public through the Russian media”.
“If the bill becomes law and Russia retaliates, we estimate that USD/RUB could move to 72.00, while EUR/RUB could hit 83.50, as any major sell-off of Russian local debt, local credit and stocks would amplify outflows from the RUB”.
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