- USD/RUB may resume the upside journey amid an escalation of tensions between the US and Russia.
- Russia has started ditching greenback against other assets on payments against exports.
- The DXY seeks the unfolding of the US NFP for further guidance.
The USD/RUB pair has reclaimed 100.00 after plunging 37.82% from March 7 high at 155.00 as Russia’s invasion of Ukraine has entered into the second month of ‘special operation’ and yet no clear indication has been observed on a ceasefire between the nations.
Although nations are releasing statements of progress in the Russia-Ukraine peace talks, the unavailability of any constructive decree is failing to keep the market sentiment stable.
US President Joe Biden clarified this Sunday that their nation does not have a policy of regime change in Russia. Earlier Biden declared that Russian President Vladimir Putin “cannot remain in power.” Adding to that, Biden calling Russian leader Vladimir Putin a ‘butcher’ has indicated the consideration of the US towards the Russian military activity in Ukraine. This seems to escalate tensions between the US and Kremlin and deviation between the greenback and the Russian ruble.
It is worth noting that Russia has started ditching the might greenback and demanding other currencies from its exporters. Russia’s state-owned Gazprom has demanded euros in place of the greenback from India’s gas giant GAIL (India) against gas imports.
Meanwhile, the US dollar index (DXY) has accessed liquidity on Monday amid a risk-aversion theme in the market. The mighty DXY is auctioning at 99.12 at the press time, 0.32% above Friday’s closing price. This week investors will focus on the US Nonfarm Payrolls (NFP), which is the leading catalyst for the Federal Reserve (Fed) to observe before drawing minutes of May’s monetary policy.