USD/RUB looks to consolidate after gyrating in a large boundary, Russia-Ukraine peace talks eyed

USD/RUB attracted significant offers near 155.00 and is likely to consolidate further.
Prohibition of Russian oil imports by the US may dampen the fiscal revenues of Moscow.
The headline of ceasefire is less likely to return the glory for Russia.

The USD/RUB pair tapped a high of 155.00 on Monday but eased off quickly towards 123.00 on rising uncertainty over the future of the Russian economy. A visible wide swing in the major is likely to bring a lackluster performance, which may be followed by a resumption in the rally.

The ban on Russia on the SWIFT international banking system, prohibition of Russian oil by the US, and cease of Russian assets by the West have left dried leaves on the financial structure of the former's economy. The oil-rich country without a buyer may fail to address its fiscal revenues going forward. In response to the ban of Russian oil at the US ports, Moscow leader Vladimir Putin has promised a retaliation, which may bring quick sanctions from its allies.

The oil prices have climbed above $125.00 on large deviation in the demand-supply mechanism led by the isolation of leading oil producers in the world.

Meanwhile, Ukrainian President Volodymyr Zelenskyy has confirmed that he is no longer pressing for NATO membership by Ukraine. The confirmation by the former is certainly an indication of a ceasefire, which may pause the destruction and death in Ukraine. However, the Kremlin may resort to operating in isolation post the ceasefire confirmation between the nations.

Adding to that, the Ukrainian leader Volodymyr Zelenskyy is ready to settle on recognition of pro-Russian territories as ‘independent’.

The US dollar index (DXY) is holding itself above 99.00 on rising odds of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed) in March’s monetary policy meeting. However, investors will also focus on the pre-mega event of US inflation numbers, which are due on Thursday.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.