What’s Next for the Russian Ruble? – USD/RUB Prediction
- USD/RUB climbed to new ATHs
- The actions emerged as Russia Invaded Ukraine.
- The pair might rise high as the US kick-starts sanctions.
USD/RUB price witnessed upswings towards a record peak on Thursday. The upside moves emerged as the Russia-Ukraine conflict escalated. Rubble climbed to the 90 high, translating to a nearly 30% jump from 2021 November lows.
Russia Attacks Ukraine
Russian ruble witnessed a massive crash after President Vladimir Putin declared a military operation in Ukraine. He stated that the move targeted to ensure peace within Eastern Ukraine. Meanwhile, Russia invaded Ukraine shortly after, bombing some Ukrainian military bases.
That way, USD/RUB plummeted since pundits expected Russia to remain isolated after the attack. Western nations such as European Union and the US plan to punish Putin with sanctions. Biden already unveiled Russia sanctions amid Ukraine’s invasion.
Some proposed sanctions will aim at the nation’s financial markets and limit vital trading regions for Russian companies.
Though the sanctions will impact the country, experts remain concerned about how long they will go. That is because Russia boasts a $600B war base that will buy the president time. Furthermore, the possibilities of Putin backing down are limited.
USD/RUB surged as market players jumped into the United States dollar for safety. Historically, investors rush to the greenback’s safety amid substantial risks. Remember, the USD index gained over 1%. The currency rose against emerging and developed cash such as the South African rand and euro.
Moreover, USD/RUB hiked as a market player priced in rate surges in the US. Keep in mind that most items might keep surging since Russia is a leading seller of wheat, natural gas, crude oil, and fertilizer.
According to the daily chart, USD/RUB saw a sharp jump on Thursday after the Ukrainian attack. The pair climbed past the vital resistance zone at 78.6 on a 24hr timeframe, surpassing its previous ATH. Moreover, the currency moved past the 25- and 50-day MAs. That showed the buyer in control. Furthermore, the MACD swayed past the neutral zone.
Therefore, USD/RUB might keep climbing as bulls aim levels past 90. Nevertheless, you cannot rule out pullback as sanctions join the narrative.