US dollar touched highs unseen in two weeks against the Russian ruble on Monday, after an unexpected surge in Russian shares eased fears that results from Crimean referendum will cause an immediate escalation in geopolitical tension.
USD/RUB rose to a session high at 36.723 at 8:15 GMT, also the pairs highest point since March 3rd, after which consolidation followed at 36.648, gaining 0.07% for the day. Support was likely to be received at March 14th low, 36.253, while resistance was to be encountered at March 3rd high, 36.858. Last week the pair gained 0.46%.
The preliminary results from Crimea’s referendum on March 16th revealed that 96% of voters in the peninsula supported leaving Ukraine and joining Russia. The Ukrainian government, the European Union and the United States consider this vote as illegitimate, while the Russian Federation said that it “fully met international norms.”
European Union foreign ministers are expected to hold a meeting in Brussels today in order to discuss travel bans and asset freezes on some Russian officials, as Russia’s government intends to annex Crimea, Bloomberg reported.
Russian Micex Index of shares extended its daily gain to 2.7%. It fell 7.6% last week.
Meanwhile, the Federal Reserve Bank policy makers are to meet on March 18th-19th. Experts projected that the bank will probably cut its monthly asset purchases, which tend to devalue the national currency, by another 10 billion USD. The central bank has reduced its monthly monetary stimulus to 65 billion USD this year from 85 billion USD in 2013.
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