According to the forecasts of the Deutsche Bank analysts, Russian ruble is now one of the most undervalued currencies and is doomed to move back to the exchange rate of RUR 60/$1, Russian Business Consulting daily reports with reference to the German bank’s analysis.
The Russian currency can therefore shift back to the exchange rate which existed prior to the recent toughening of the US anti-Russian sanctions. Deutsche Bank had included Russian ruble in top three most undervalued currencies along with Colombian peso and Turkish lira. Lira is currently valued at about 50% of what it is worth in fact, whereas ruble is 15% undervalued.
It is noteworthy, US dollar is also found undervalued (by 7%). Last week, FRS raised its basic rate which will additionally support the main global currency. Russia’s regulator raised its lending interest rate as well in order to fight inflation, and may raise it again by the year end. That is a play in favor of the national currency.
Ruble is also supported by a relatively high oil price (over $80 a barrel) and lowered purchases of foreign currencies by the Central Bank.
The current exchange rate is RUR 65.5/$1.