USD/RUB drops below 60.00, fresh 18-month lows

The Russian currency remains on a firmer footing at the beginning of the year, now sending USD/RUB to test fresh 18-month lows in sub-60.00s levels.

USD/RUB lower on USD selling, Brent

The pair is sharply lower during the second half of the week, tumbling to the mid-59.00s, levels last seen in July 2015 following a generalized selling pressure around the Dollar.

Furthermore, the barrel of Brent crude is up nearly 1% around the $57.00 mark in response to the soft buck, all collaborating with the upside in spot.

Later in the session, the greenback will take centre stage as US Markit’s Services PMI and the ISM Non-manufacturing are due preceding the more relevant Non-farm Payrolls due tomorrow.

RUB has been one of the top performers in 2016, appreciating by more than 16% vs. the Dollar, following crude oil dynamics and a tighter monetary policy by the CBR.

USD/RUB levels to watch

At the moment the pair is retreating 1.60% at 59.49 facing the next support at 58.57 (low Jul.29 2015) and then 56.20 (low Jul.10 2015). On the other hand, a break above 61.22 (20-day sma) would expose 61.63 (high Dec.20) and then 62.49 (high Dec.18).