Don't Count on Buoyant Oil Price to Fuel Ruble Resurgence: Chart

(Bloomberg) -- Buoyant oil prices are supporting the ruble, but not by as much as in the past: The trade-weighted ruble is about 15 percent weaker than the historical link to crude would suggest, according to Bloomberg Economics calculations. Upward moves in oil prices should still be supportive of the currency, but that probably won’t be enough to offset other factors -- monetary policy, investor sentiment, politics and the general trajectory of the economy. There’s little reason to expect a significant rebound in the exchange rate unless the U.S. sanctions threat looming over Russia is lifted.

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