Forex Market: USD/RUB barely moves in Moscow, drops 11% offshore as the next round of Ukraine talks begins

USD/RUB remained mostly steady during the Moscow trading session on Monday, as markets were expecting the next round of negotiations between Russia and Ukraine due to begin at 10:30 a.m. Kyiv time (08:30 GMT).

USD/RUB was 0.74% stronger to trade at 115.1000 in Moscow, while offshore, the currency pair was retreating 11.18% on Monday to 119.199. Last week the Russian currency plunged to a fresh all-time low of 150 against the US Dollar, but later stabilized after Russia’s central bank restricted access to foreign currency and the government rolled out initial support measures.

Still, however, the Rouble has depreciated nearly 30% against the US Dollar since Russian military forces moved into Ukraine, while the outlook for the currency remains highly uncertain.

Ukraine said over the past weekend that Russia was “beginning to talk constructively” and that it expected results in a matter of days.

According to a Russian delegate, negotiations between the two countries have made significant progress and draft agreements could soon be reached.

The Moscow Stock Exchange remained closed on Monday by order of the central bank.

Brent crude oil, a global benchmark for Russia’s main export, was losing 3.15% on Monday to $108.80 per barrel. Last week the commodity rose as high as $138.03 per barrel, which has been its strongest price level since July 2008.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 115.3695
R1 – 117.3905
R2 – 120.5285
R3 – 122.5495
R4 – 124.5705

S1 – 112.2315
S2 – 110.2105
S3 – 107.0725
S4 – 103.9345