Dollar, euro down against ruble as oil prices grow
Moscow. The dollar and the euro are going down against the ruble as Brent oil prices continue growing, according to trading data.
The dollar declines 2.36% to 62 rubles. The euro drops 1.35% to 76.8 rubles.
The dollar therefore drops by 3 rubles and the euro lost 3.7 rubles against the highest values reached earlier today.
Brent oil futures with delivery in June 2018 grew by 1.6% to $72.18 per barrel at the same time.
Department director of the Central Bank Alexander Morozov told reporters on Wednesday that ruble weakening may influence on inflation with a major delay.
"When we are speaking about sustainable weakening [of the ruble rate], then the basic effect [on inflation] surfaces within 3-6 months and the effect fully takes the lead in 12 months. Grounds are in place to believe that this effect will manifest over the longer period. It will not be a large-scale one but prices will respond to the currency rate change with a major delay," Morozov said.
Weakening of the nominal effective rate of the ruble by 10% can add slightly less than one percentage point to inflation unless the ruble recovers after the drop, the banker said.
"Ruble weakening in nominal effective terms against the dollar and other currencies adds one percentage point to inflation on average," Morozov added.
The dollar is currently traded at 62.93 rubles. The euro rate is 77.87 rubles, following the negative response of the ruble to recent US sanctions.