USD/RUB sinks to lows near 60.50 on Brent gains

The Russian currency is gathering further traction today, sending USD/RUB to test fresh lows in the mid-60.00s region.

USD/RUB weaker on Brent gains

The pair is shedding over a cent since yesterday’s tops above 61.50 in response to the better tone in crude oil prices. In fact, RUB is deriving extra support as the barrel of Brent crude has surpassed the $58.00 mark today, levels last traded in July 2015.

Absent releases in the Russian docket this week, the focus of attention should remain on crude oil dynamics and key US data

In addition, US-Russian political effervescence seems to have picked up as of late, and could become a source of instability for RUB, somewhat limiting the downside.

According to the latest CFTC report, RUB speculative net longs remained around multi-week lows near 14K contracts on the week to December 27.

USD/RUB levels to watch

At the moment the pair is retreating 1.14% at 60.57 facing the next support at 60.11 (2016 low Dec.28) ahead of 58.57 (low Jul.29 2015) and finally 56.20 (low Jul.10 2015). On the other hand, a break above 61.55 (20-day sma) would expose 61.63 (high Dec.20) and then 62.49 (high Dec.18).