Ruble Weakens After Japan’ Intervention, May Appreciate Later

The Russian ruble weakened today against the dollar-euro basket on the speculation that the appreciation of the currency would be curbed after Japan sold the yen for the first time since 2004.

The ruble also fell as the oil prices slipped. Russia’s central bank may intervene to stabilize the currency as its swing may hurt the exports. In the long run, Japan’s intervention may be good for the ruble as the yen’s weakness, together with the declines of the dollar and the euro, can increase the demand for the currencies of the developing markets, including the ruble.

USD/RUB jumped from 30.564 to 30.885 as of 12:09 GMT today, following the advance to 31.039.

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