During February the Russian rouble strengthened further against the US dollar from 75.746 to 73.868. CBR’s guidance on neutral range for the real policy rate means RUB appreciation in the coming months. Thus, economists at MUFG Bank forecast the USD/RUB at 69.83 by year-end. Key quotes “With Brent now firmly above $65/b and the reduction in central bank FX purchases from around $100 M a day to $30 M, we view that RUB appreciation has further to run.” “Last month the CBR articulated its monetary policy stance with a noticeable hawkish shift, and during a press conference, Governor Nabiullina confirmed that there was no more room to cut rates further. Crucially, she added that the CBR will be weighing a return to monetary policy normalisation in the future. We view that such statements could be instrumental for the RUB as it signals that the next rate move might be a rate hike.” “If the CBR were to return to a neutral monetary policy, it would be done either via a robust disinflation process (inflation falling close to 3%) and/or via a tighter monetary policy (policy rate hikes). On net, we continue to believe that there is strong RUB upside potential.” “Geopolitical risks are a lingering concern but we view that fundamental drivers will outweigh this and drag USD/RUB below 70.000 by year-end.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD powerless against Powell, Nonfarm Payrolls could deliver extra punch Yohay Elam 1 year During February the Russian rouble strengthened further against the US dollar from 75.746 to 73.868. CBR's guidance on neutral range for the real policy rate means RUB appreciation in the coming months. Thus, economists at MUFG Bank forecast the USD/RUB at 69.83 by year-end. Key quotes "With Brent now firmly above $65/b and the reduction in central bank FX purchases from around $100 M a day to $30 M, we view that RUB appreciation has further to run." "Last month the CBR articulated its monetary policy stance with a noticeable hawkish shift, and during a press conference, Governor Nabiullina confirmed… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.