Economist predicts further weakening of the ruble

The trends that contribute to a further weakening of the ruble linger on, Dmitry Babin, stock market expert with BCS World of Investments, said adding that December is always the worst time for the Russian currency.


This year, the ruble also weakened in November, the expert said: it dropped to ninth place from the second line on the global ranking of major currencies by year-to-date change against the US dollar.

In December, the ruble will face additional risks such as higher geopolitical pressure, as well as lower commodities’ prices, mostly oil, the expert noted. The curtailment of the FRS monetary stimulus could be another negative factor.

The pandemic getting worse with the new coronavirus strains is likely to slow down economic growth, Dmitry Babin believes. The likelihood of a worst-case scenario, which predicts a new crisis, is also quite high.

The ruble is vulnerable now, Babin stressed. However, the dollar is unlikely to exceed 85 rubles by the New Year, the economist added quoted by Prime.

Invest Foresight previously reported Babin’s warning against investment in exotic currencies. The currencies of Iran, Venezuela and Afghanistan can be risky for investors.

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