Thursday, 10 June 2010

Ruble to strengthen by autumn

U.S. investment bank Goldman Sachs predicts that by September, the Russian ruble will have strengthened to 28 to the dollar.

After a solid gain over the summer, analysts predicts that the exchange rate will likely remain the same for nearly 12 months, may be increasing to 27.5 rubles to the dollar, from the current Russian Central Bank rate 30.45 rubles to the dollar.

Goldman Sachs also forecast that the euro, which will be steadily at around 37.8 rubles for the next six months, in a year will firm up to 37.1 rubles/euro in a year's time. On Friday, May 28th, The Central Bank set the euro at 37.63.

The Goldman Sachs forecast are based on expectations of rising oil prices, which not only increase Russian budget revenues but will also facilitate the resumption of capital inflows.

Experts also expected the stronger ruble to contribute to faster growth in Russia's economy from mid-2010, predicting that Russian GDP will grow by 5.8% this year and 6.1% in 2011

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