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The rise in oil helps the ruble to turn a blind eye to Ukraine

Schedule ruble to dollar at intervals of 4 hours

The Russian ruble was supported by higher oil prices on Tuesday, but gains were limited by escalating tensions with Ukraine, while emerging market equities rallied amid improved sentiment over the global economic recovery.

The ruble gained about 0.2% amid rising oil prices due to the prospect of improving global demand. But the currency is still not stable after the United States imposed sanctions on Russia last week.

Tensions escalated on Monday after Moscow reportedly concentrated more than 100,000 troops on the border with Ukraine. The ongoing dispute with the Czech Republic could also dampen sentiment in Russian financial markets.

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“The US has already introduced new sanctions against Russia, and any military step will lead to their escalation. However, so far they have not influenced Moscow, and the most painful sanctions mean pain for the West and even risk fragmenting the global financial system, “Rabobank analysts wrote.

Russian stocks fell about 0.2% below record levels. The weakness of the ruble and recent US sanctions on Russian debt have led investors to turn to Russian equities to maintain their position in the country.

Emerging market equities rallied, with Asian equities supporting the MSCI stock index as the region’s economic outlook improved.

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Emerging market currencies were broadly stable on Tuesday as the dollar’s weakness was offset by a devastating second wave of COVID-19 cases. Countries including India, Brazil, Turkey and some Central European countries are facing skyrocketing infections and deaths.

The rise in US Treasury yields this year put pressure on emerging market assets, with trading in most currencies declining as US debt looked more attractive. However, the recent drop in yields was positive for emerging market assets.

BlackRock analysts believe the stabilization in US yields and the relatively low valuation will help emerging market assets after a weak start to the year.

In Europe, the Middle East and Africa, the Turkish lira has traded unchanged, remaining in the narrow range seen in the past few days after the central bank spoke softly at its recent monetary policy meeting.

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Turkish Finance Minister Lutfi Elvan said on Monday it would be helpful to release past central bank data on currency trading, which is at the center of political opposition efforts demanding the government to account for $ 128 billion in sales.

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