The US-Russian relations have been strained for more than a decade now. Yet, it is president Trump who, contrary to his promise, decided to press Russia, its economy and currency against the wall. The Russian ruble has naturally fallen victim to new sanctions, implemented against the Russian state once again. The last time the RUB has experience a plunge of comparable proportions was in April 2018. As of today, the RUB and the USD is traded 67 to 1. The Russian currency, thus, has reached its two-year low and is not expected to rebound any time soon.
Each time the United State implement sanctions against a new company/personality the ruble loses a portion of its value. The Russian economy, unlike its territory and military, pales in comparison to the United States and can, therefore, be easily affected by the world’s economic powerhouse.
President Trump, contrary to popular belief and official rhetoric, can make the life of the Russian government and its closest allies within the country much harder.
What should you expect from the Russian national currency and economy in the coming days?
Politically turbulent times, as always, offer lucrative trading opportunities to those who know how to capitalize on them. By getting a little bit deeper into fundamental analysis you can predict the future direction of the trend in advance and use this information to your advantage.
In Forex trading, the exchange rate of national currencies depends on the performance of the national economy. Since the Russian economy is doing poorly compared to the rest of Europe and the United States, the RUB can be expected to follow. Additional sanctions and counter-measures, implemented by the US, will most certainly hurt the Russian economy and the exchange rate of RUB. If everything remains the same, it is the question of when, not if.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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