RUB slumps on Russian officials' irresponsible comments

Oil price is currently the most important driver for the Russian currency, but the cause behind yesterday's ruble weakness was rather irresponsible comments by Russian officials. USD/RUB breached the 80 mark and closed at 81.01 after hitting session highs at 82.45. The spike was very pronounced considering the oil price movement.

Comments by Russian Minister of Finance as well as the Minister for Economic Affairs signaled a rate cut, which at this stage would be completely irresponsible. Comments later by central bank officials were no more helpful. CBR governor Elvira Nabiullina said that the central bank would not intervene in the FX market to support the ruble unless the stability of the financial markets was in danger.

USD/RUB is extending upside today, is up around 5.07% and is currently trading at 85.15. The falling oil price is making life difficult for the ruble.