Bloomberg reporting that the Russian’s maybe dipping in to steady the currency.
The traders are from Alfa, Aljba ans Metalloinvestbank, adds BBG
There’s also a few banks saying that the CB might start hiking rates.
SocGen say the CB is increased pressure to slow the ruble collapse and that raising rates is less likely but possible.
Capital Economics says that the currencies drop signals a large rate rise may be coming and forecasts a 100bp hike to 10.5% but it could be larger.
USD/RUB H1 chart 01 12 2014
With oil playing a big part in the currency and the Russian economy the central bank are swimming against a very strong tide. You’ve got to wonder whether Putin might start caving in to the sanctions to help save his economy.