Russian ruble becomes most attractive currency after Brexit

(Baonghean.vn) - The Russian ruble could become one of the most attractive currencies after Britain leaves the European Union. This will be a trend in both the short and long term.

The Russian ruble is attracting investors.

“The ruble will do well in the long term, in the six to 12 months, because oil prices are not affected much by Brexit,” Per Hammarlund, chief market strategist at SEB SA in Stockholm, said in an email interview with Bloomberg.

He also said that in the short term, investors may also be eyeing the Turkish lira and the South African rand.

Last Friday, the result of the referendum in the UK, with 51.9% of the population choosing to leave the EU, caused a huge decline in many stocks and currencies on the world market.

The British pound has hit a record low, falling below £1.35 to the US dollar, marking its deepest fall in 30 years.

At the same time, the Russian ruble has strengthened as oil prices have risen and exporters need money to pay taxes. Morgan Stanley also predicted that the British referendum result would have little impact on Russia.

“Investors believe that Brexit will have little impact on Russia and oil trade. The ruble will not fall because there are many large tax transactions on that day,” said Artem Roschin, a currency expert at Aljba Alliance LLC in Moscow.

“The ruble is one of the most stable currencies in the context of the Brexit referendum,” said Tom Levinson, a strategist at Sberbank CIB, in a report.

“I think emerging markets will be stronger, at least in the short term,” the strategist added.

The Russian ruble has been a popular choice for investors since the start of the year. It has strengthened again, gaining 14.7%, its biggest gain in three years.

According to Bloomberg, bonds of countries like Russia and Brazil may become a haven for investors, in the context of other countries suffering from political instability due to the impact of Brexit.

Before the vote, developed economies played a huge role, but as the situation changes, investing in such markets becomes more risky. That is why emerging markets are becoming increasingly attractive to investors.

“Brexit has sent the pound into freefall and investors have seen the EU weaken, which means the EU’s economic and political future is also affected.”

At a time when Europe is facing turmoil, a relatively isolated Russia is seen as a safe haven for investors, said Tulinov, head of research at Rosbank PJSC in Moscow.

“Previous sanctions actually helped protect Russia. They kept Russia from relying on the United States or Europe, thus making the Russian economy “relatively insulated,” said Jan Dehn of Ashmore Group Plc’s research center./.

Dawn

(According to Sputnik)