Ruble Falls After Oil After OPEC + Decision on Oil Production Quotas
OREANDA-NEWS. The ruble at the beginning of the week was winning back with a tangible fall against the main reserve currencies, the collapse of the oil market after the OPEC + decisions on oil production quotas since August.
The general weakening of risk appetite on global trading floors due to the coronavirus adds negative to the dynamics of the Russian currency.
The dollar exchange rate in calculations "tomorrow" at 16.15 Moscow time grew by 57 kopecks to 74.64 rubles, the euro rate - by 53 kopecks, to 88.02 rubles, follows from the data of the Moscow Exchange.
On Monday, the Russian currency is significantly falling against the dollar and the euro, playing out the strengthening of the negative conjuncture of the global financial and commodity trading floors.
First of all, this is due to the strong drop in the oil market. The price of the Brent brand loses 3.3%, dropping to 71.2 dollars.
The main event for the oil market earlier this week is the OPEC + decision on the deal. The alliance on Sunday agreed to extend the agreement on limiting oil production for the period from May 2022 to the end of the year and monthly, starting in August 2021, to increase production by 400 thousand barrels per day. In addition, it was agreed to increase the base of oil production cuts from May 2022 for Russia, Saudi Arabia, UAE, Iraq and Kuwait.
The negative for the ruble is also supported by the conjuncture of the financial markets. Thus, the dollar index (DXY) adds 0.3% to almost 93 points. At the same time, the euro loses 0.2% to $ 1.1778. US stock futures and Western European stock indexes fell 0.9-2.7%.
The flight from risky assets also reflects growing concern about the growing number of infections worldwide with the delta coronavirus.