The fierce presidential race in the US was broadly covered in the Russian media that made the population sympathize with the charismatic Republican nominee known for his pro-Russian stance. The Russian nationals cheered Trump’s victory in the US presidential election last month. The population shares the hope that the US president-elect will reboot diplomatic relations between the two superpowers.
Indeed, the Russian currency seems to have benefitted from upcoming Trump’s presidency even before his inauguration in January. Donald Trump could change trading sentiment among US speculators on the Russian ruble. So, large speculators like banks and hedge funds closed almost all short positions on the ruble in just one post-election week. They are no more betting on the ruble weakening. According to the data of the US Commodity Futures Trading Commission (CFTC), the last trader closed 140 short positions on the ruble immediately after the announcement of the election outcome.
Meanwhile, the Russian ruble is gradually regaining losses, having grown by more than 15% this year. The ruble may continue to strengthen in 2017, says Morgan Stanley citing several weighty arguments. Trump’s program could be one the reasons behind ruble’s appreciation.
