USD/RUB seen grinding lower to 60.00 in 6-month – Danske Bank

According to analysts at Danske Bank, the Russian rouble is expected to gather further traction in the medium term, sending USD/RUB to the 60.00 area in 6-month’s view.

Key Quotes

“Russia’s currency rallied back to its pre-Brexit levels as markets are pricing a more dovish Fed in 2016”.

“We continue to be moderately bullish on the RUB in the long term, keeping our forecasts unchanged since the latest FX update, seeing upside risks for our RUB forecasts on the Fed’s extended dovishness”.

“Yet, the start of dividend payments by Russia’s biggest companies in July-early August continues to be slightly RUB negative”.

“Our USD/RUB profile is unchanged: 65.60 in 1M, 63.70 in 3M, 60.00 in 6Mand 57.10 in 12M”.