The dollar is unlikely to break through the psychological threshold of 90 rubles in the coming weeks, according to Guzel Protsenko, general director of Alfa-Forex, a Russian foreign exchange trading firm.
Protsenko told the broadcaster RT that the Russian currency remains in a stable position thanks to high global oil prices and the Central Bank of Russia's decision to hold its key interest rate at 14 percent.
She said the positive trends seen on Russia's currency market would continue through the middle of September, adding that the ruble remains an attractive asset for medium-term investment.
Rate Expected to Hold Steady
Analysts expect the exchange rate to remain in a range of 82 to 87.5 rubles to the dollar this week and through the end of the second ten-day period of the month, Protsenko said.
She said the ruble is receiving additional support from the Central Bank's tight monetary policy and a significant rise in global oil quotations.
Protsenko also pointed to high export prices for Russian energy resources, which she said could push commodity companies to increase sales of their foreign currency earnings ahead of a new tax period. Combined with the returns available on ruble-denominated financial instruments for domestic investors, along with broader macroeconomic and political stability in the country, she said this makes it unlikely the dollar will approach 90 rubles in the next two to three weeks.
The Central Bank of Russia is the country's monetary authority, responsible for setting the key interest rate that guides borrowing costs across the economy. The key rate is one of the main tools policymakers use to influence inflation and the value of the ruble.
Dollar Remains Russians' Top Foreign Currency
The report follows earlier findings that the dollar remains the most popular foreign currency among Russians. Analysts at the financial marketplace Banki.ru said the dollar accounts for 68 percent of all currency purchase requests, while the euro makes up 22 percent.
