Swiss bank UBS predicts Ruble strengthening
The Russian ruble could strengthen to 66 against the US dollar or even better in the coming months, UBS asset management analyst Michael Bollinger said.
On Tuesday the USD/RUB fell to 68.57, which is the lowest value since March 6. Closer to the end of trading the quotes jumped to 68.75. Taking this level into account, UBS expectations imply strengthening of the Russian currency by 3.75%.
In March, the bank clients received a recommendation to double long positions in the ruble, which was then traded at about 80 per dollar, the expert said.
The recovery of oil prices should put producers with low production costs in a favorable position. They may potentially increase market share in the recovery.
By the end of trading on Tuesday, Brent and WTI quotations demonstrated more than 3% growth to US$39.52 and US$36.73 per barrel respectively.
The consensus forecast of analysts interviewed by Bloomberg suggests that the average ruble exchange rate in Q3 2020 will be 73.10.