Dollar Growth Stopped

Market members continue removing funds from ruble tools, but the dollar does not grow

Something is missing for the American currency despite the recent success of the dollar against the euro. That was enough for the euro to partially retrieve its previous position. The humble weakness of the dollar against other currencies of the world allowed the euro rate rise to the level of 1.1300 dollars per euro.

The level of 1.1260 dollars per euro has been left behind again. The euro was sold for 1.1300/10 in the zone, 1.1245/50 bids create a good primary support. The euro considerably rose against the British pound in comparison with the level that was registered on Friday. The British currency is still paralyzed with the continuing political crisis in connection with the fabricated evidence to prove the existence of WMD in Iraq.

Some dealers say, the latest rise of the euro rate may be explained with the rumor about the European Central Bank selling a part of its currency assets in the American bonds. That opportunity was actively discussed at the equity market on Friday night. Dealers say, when the talks began, the euro was traded at around 1.1240 dollars per euro, and stops affected the situation later on, ForexPF news agency said. In addition to it, American investment banks and Swiss banks were noticed as buyers during the moment when the euro was sold for $1.1260/80. German banks were noticed on both sides of the market, and Asian market members were noticed as sellers.

In Russia, the dollar has been exercising its feebleness too. The weighted average dollar rate against the Russian ruble dropped by 669 points (one point is equal to 0.01 kopecks) yesterday in comparison with the Friday level and made up 30.3647 rubles per dollar.

At the end of the last week, experts believed that the dollar rate would resume its growth already on Monday, if banks preferred to invest funds in currency. It was supposed that the Russian Central Bank could prevent the further strengthening of the dollar against the Russian ruble. Specialists say, the Central Bank is not intended to let the dollar go higher than 30.53 rubles per dollar. However, the dollar is not growing yet.

The situation in the field of the banking ruble liquidity remained favorable, inter-bank loan rates were set on the level of 1-2 percent per annum. Market members are gradually removing the funds from ruble tools, although it does not lead to the dollar growth either. Experts believe, market members decided to wait with investments until the conflict with the oil giant Yukos is finally settled. This scandal might become a dangerous precedent - it is not ruled out that privatization results can be put into question. It is an open secret that a reconsideration of privatization results touches upon the interests of a lot of people, both residents and non-residents.

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Author`s name Margarita Kicherova