- Russian Ruble euphoric rally against Euro fades
- Commodity currencies on demand
- EUR and RUB eyes economic data
- Russia’s services PMI expands
The RUB to EUR pair was seen trading on Thursday morning trade within a trading range of 0.007653 and 0.009199 high of the day. At 09:55 UTC, RUB/EUR trades down -13.10% at 0.007645. The Russian Ruble rocketed on Wednesday in the biggest one-day rally since December 2014.
Russia’s currency made significant gains on Wednesday against its counterpart Euro after intervention by the Russian Central Bank that aided the Ruble’s bounce back from a record low. However, the RUB to EUR exchange rate crashed to a new intraday historical low of 0.007676.
The Russian Central Bank raised its benchmark interest rate from 9.5% to 20% on Monday in an effort to calm the exchange rate in the aftermath of Moscow’s invasion of Ukraine.
Most commodity currencies tracking Russia – Ukraine conflict rallied on Wednesday as crude oil price soared to the highest level since 2011.
Meanwhile, on the economic data front, we saw the Markit Services PMI in Russia rise for the second month to 52.1 up from the 49.8 previous reading, signaling expansion. Markit Composite PMI also expanded to 50.8 up from 50.3.
In the Euro area, the services sector recovery was slower than expected due to renewed restrictions imposed to tackle the omicron variant.
The PMI service and PMI composite released by the Markit Economics both dropped to 55.5 in February from 55.8 in January. The demand for services mostly faded as prices continued to soar.
