The Russian ruble was the best performing currency among emerging peers overnight forex market trade, says ING.
The USD/RUB peer traded at 65.04 Wednesday from around 66.45 late last week, and if oil prices remain around $45-$46 per barrel, the USD/RUB can fall to 64-64.5, ING says.
Looming long May holidays in Russia can also spur supply of foreign currencies from companies, which should be positive for the ruble. “We expect a solid forex performance from the ruble by the end of the week.”
Long holidays, however, are a source of risk aversion. This may pressure the ruble as players would prefer to spend holidays with hard currencies such as U.S. dollar or euro while the market activity is low, other analysts warn.