Russian analyst: The ruble will continue to fall
The payment of the mineral extraction tax in Russia was completed, and at the same time the ruble stopped gaining strength, which again turned out to be “in the hands of geopolitics and oil quotations,” stated analyst for the eToro investor social network in Russia and the CIS, Mikhail Mashchenko.
As of 17:46 Moscow time, the dollar rate calculation for “tomorrow” added 16 cents to the previous close and reached 58.9325 rubles. At the same time, the rate of the euro rose almost 81 kopecks to 66.5275 rubles, according to the Moscow stock exchange.
“On Wednesday we will be paying income tax, for which domestic companies will need to have about 200 billion rubles on their hands, but it is highly doubtful that this will have any significant impact on the quotes,” the expert’s review stated.
In his view, “despite some stability in the commodities market, the national currency feels insecure due to the arrest of 32% of the shares that business conglomerate Sistema owns in MTS, as well as other assets it owns, as part of the legal dispute with Rosneft.”
“It is likely that the ruble will continue its slow decline until we hear the serious news that it has fallen to the levels of 59.50-60 per dollar and 66.50-67 per euro,” Mashchenko suggests.
In his opinion, “if you take into account all the fundamental factors that have a negative impact on the domestic currency, its value should be much lower, but large sales should be expected only when there are big headlines concerning geopolitical tensions or problems in the commodities market.”