The Pound Sterling to Russian Ruble (GBP/RUB) exchange rate rallied by almost 1% on Wednesday morning.
After minutes from the most recent Bank of England (BoE) policy meeting showed policymakers were upbeat about progress in the Eurozone, the Pound strengthened versus the majority of its most traded currency rivals. This is despite the fact that the policymakers were unanimous in their decision to hold the benchmark interest rate.
The Russian Ruble, meanwhile, softened versus its peers after Bank of Russia’s (BOR) First Deputy Governor Ksenia Yudaeva stated that the oil-led rally was now over.
The Pound sterling to Russian Ruble (GBP/RUB) exchange rate is currently trending in the region of 80.2100.
Pound Sterling (GBP) Exchange Rate Edges Higher on BoE Minutes
Although political uncertainties are weighing heavily on demand for the British asset, the Pound strengthened versus many of its most traded currency rivals. That is not to say that the forthcoming general election is not having an effect, however, with trader uncertainty seeing Sterling gains sluggish and laboured.
The appreciation was in response to upbeat minutes from the BoE’s most recent policy meeting. Although all nine policymakers were unanimous in their decision to hold the cash rate, the hawkish tone regarding the expectations of better growth thanks to improvement in the Eurozone’s economic recovery was received well by investors.
‘My sense is they were quite hawkish on interest rates and inflation,’ said Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd. in London. ‘That’s boosting the Pound.’
The Pound Sterling to Russian Ruble (GBP/RUB) exchange rate dropped to a low of 79.1600.
Russian Ruble (RUB) Declines on Bank of Russia Officials Comments
After comments from BOR First Deputy Governor Ksenia Yudaeva regarding the likelihood that the oil-led rally had ended, the Ruble softened versus the majority of its most traded currency competitors. ‘The fast appreciation of the Ruble that we saw, linked to the sharp upswing in the price of oil by 30 percent — that’s over,’ Ksenia Yudaeva said at a conference in Moscow on Wednesday. ‘Now we are seeing a stabilization.’
‘By summer, the volatility should decline to levels seen in the fall of last year, provided there’s a similar drop in oil’s volatility,’ Yudaeva said. ‘If the volatility of oil remains high, then the process will take more time.’
‘The level of risk to financial stability is now substantially lower than it was several months ago,’ Yudaeva added. ‘The banking sector, as a result of control over its currency position, is relatively well protected against currency risks.’
Pound Sterling to Russian Ruble (GBP/RUB) Exchange Rate Forecast to Hold Gains
Although Russia’s Gross Domestic Product (GDP) is due for publication later on Wednesday, the Pound Sterling to Russian Ruble (GBP/RUB) exchange rate is likely to hold gains for the remainder of the European session given the strength of the advance. Thursday ought to see GBP/RUB volatility with British retail sales data due for publication.
The Pound Sterling to Russian Ruble (GBP/RUB) exchange rate climbed to a high of 80.4500 today.
