The US Federal Reserve's decision to raise the interest rate to 0.50-0.75% led to a record growth in the US currency - the dollar hit 13-year highs against a basket of major currencies.
According to CNBC, the dollar index rose 0.5% against euro, yen, pound sterling, Canadian dollar, Swedish krona and Swiss franc to 102.27, with a short-term rise to 102.62 for the first time since 2003.
In addition to the increase in the base rate, foreign currency exchanges were also affected by the statement of the Federal Open Market Committee (FOMC) that it expected to raise short-term rates next year – probably in three separate quarter-point moves.
The ruble exchange rate against the dollar has fallen. As of 23:44 pm (MSK) the dollar reached 62.0250 rubles. In the morning, the dollar was worth 60.78 rubles on the Moscow stock exchange. Today, however, in the first minutes of trading, the dollar has lost 50 kopecks.
The head of the Regional Banking Association, the chairman of the Duma Committee on Economic Policy, Innovation and Entrepreneurship Development, Anatoly Aksakov, speaking with a correspondent of Vestnik Kavkaza, said that the decline in national currencies and oil prices due to the rise of the US Federal Reserve rate is a temporary phenomenon.
"When the US Federal Reserve rate rises, the price of all other assets declines, and this applies to both oil and currencies, because the dollar is the equivalent of the assessment of all other assets in the world. However, considering that everyone knew that the the US Federal Reserve rate will be raised in December, so the depreciation of currencies and commodity prices will be temporary, related to emotional behavior of financial speculators," he said.
According to the deputy, the financial and oil markets will calm down in a few days. "Yesterday and today we are witnessing a normal emotional reaction of players on the stock exchanges. But we will see the growth of assets in the near future. Next week everything will fall into place," Anatoly Aksakov assured.
The Chairman of the Board of the National Currency Association (NCA), Dmitry Piskulov, elaborated further on the market readiness for an increase in the base rate in the US. "It will not put pressure on the ruble, because the market has already known about the Fed raising rates to 0.25% points, the Fed officials have repeatedly stated this. Accordingly, it has already been included in prices. So now, there was only a small correction due to the decision, and there will be no strong long-term impact. Now the ruble exchange rate is more affected by the oil price and the fact that Western funds are very optimistic about the ruble in terms of the strengthening of the Russian economy," he said.
As for the oil price, which declined yesterday, this decline fits in the New Year's volatility of futures. "It is rather a short-term phenomenon, as the futures have already reacted to the rate change. While the decision to reduce oil production continues to affect the market, but also there is an understanding that the trend of increasing oil prices may stop. On the whole, now the New Year's volatility began: the number of players on the market is reducing, which may lead to strong price fluctuations," Dmitry Piskulov warned.
As for the oil price, which declined yesterday, this decline fits in the New Year's volatility of futures. "It is rather a short-term phenomenon, as the futures have already reacted to the rate change. While the decision to reduce oil production continues to affect the market, but also there is an understanding that the trend of increasing oil prices may stop. On the whole, now the New Year's volatility began: the number of players on the market is reducing, which may lead to strong price fluctuations," Dmitry Piskulov warned.
