A major speech of Russian President Vladimir Putin strengthened the ruble. While the world leaders are apprehensive about next steps of Moscow, the Russian ruble is erasing its losses against the US dollar and euro intensively. Sell-offs of local stocks became a foreseeable reaction of the market. However, no one has expected a reversal in the currency market. Vladimir Putin's speech, which revealed the President's willingness to negotiate the situation in Ukraine with OSCE's officials, gave momentum to the ruble sending it to a 1-month high versus the greenback. “The market bulled after the meeting of Putin and OSCE, traders closed some currency longs, the number of which is still big though. Investors treated the meeting’s results as a signal that there would be no escalation of the conflict in Ukraine”, a dealer at a major western bank commented on the situation. According to the market data, the buck cost 35.05 rubles, down 35 kopecks from the previous close. Now, the dollar is at its lowest level from April 4. The single currency dropped by 60 kopecks to 48.75 rubles per euro. “The dollar may fall to 35 rubles but not today or tomorrow as on Thursday investors are likely to hedge risks ahead of long weekend in Russia,” the dealer added. He noted also the coming news conference of ECB's Head Mario Draghi scheduled on Thursday as one more important factor to influence currency movements.
