The Pound Sterling to Russian Ruble (GBP/RUB) exchange rate softened fractionally on Wednesday as traders await the latest set of policy meeting minutes from the Bank of England. The Ruble, meanwhile, is generally struggling against its major peers as a result of a surprise rate increase to soften demand for the currency.
The Pound Sterling to Russian Ruble exchange rate is currently trending in the region of 104.5265.
Pound Sterling (GBP) Exchange Rate Declines ahead of BoE Minutes
As traders await the minutes from the most recent BoE policy meeting, the Pound softened against the majority of its most traded rivals. This is likely to be as a result of trader anxieties that at least one of the previously hawkish dissenters will change their mind.
‘The risk is that at least one of the two hawkish dissenters could shift views, although given current expectations priced into the rates markets we do not believe this would warrant a strong FX market reaction,’ BNP Paribas SA analysts led by Steven Saywell, the London-based global head of foreign-exchange strategy, wrote in a note dated today. ‘U.K. rate hike expectations have been pushed to February 2016 following the surprise slowing in the November CPI.’
The Pound Sterling to Russian Ruble exchange rate has dropped to a low today of 101.1101.
Ruble (RUB) Exchange Rate Stutters on Rate Hike
After Russia’s central bank opted to increase their benchmark rate from 10% to 17%, the Ruble slumped across the board. ‘The situation is catastrophic,’ said Rudenkov, a 35-year-old manager. ‘I don’t believe that the Ruble collapse is happening only due to the falling oil prices. The government is the one to blame as it didn’t defend the national currency.’
Pound Sterling to Russian Ruble (GBP/RUB) Exchange Rate Forecast to Strengthen
Although there is a general sense that the BoE minutes will reveal a transformation from hawks to doves, the decline seems to have been priced-in. Furthermore, the dramatic Ruble drop is unlikely to recover quickly.
The Pound Sterling to Russian Ruble exchange rate has reached a high today of 122.0111.
