Analysts: Dollar Exchange Rate To Grow

It's about time to buy the U.S. currency.

The dollar and euro showed significant growth at the Belarusian Currency and Stock Exchange last week. Judging by the developments, this is far from being the ceiling, myfin.by writes.

By the end of last week, as the analysts predicted, the rate of the Russian ruble on the Belarusian currency market ended trading in the red zone, while the U.S. dollar and the euro were actively growing.

The main reason for such behavior of the currency pairs was the weakening of the Russian ruble on the Moscow Currency Exchange. The rate of the currency pair USD/RUB raised to 61.6565 and closed the trading at the level of USD/RUB 61.0025. The euro was also growing in value in Moscow and last week's trading closed at EUR/RUB 60,710. Over the past week, the Russian ruble weakened against a pair of major currencies by about 3.0-3.5%.

According to experts, the ruble decline could have been more significant, but the growing price of oil was a kind of counterweight to this process. The price of a barrel of "black gold" grows after the decision of the OPEC+ summit to reduce oil production by 2 million barrels per day.

The price of Brent crude oil returned from a low of 82.44 USD/Br on September 26 to 98.45 USD/Br, almost reaching the cherished $100 per barrel.

Since the main focus falls at the end of the week, there is a good chance that this week will pass under the influence of these factors - the Russian ruble will depreciate against major currencies but a rising oil price will counteract the weakening of the ruble. Time will show which factor will prevail.

Rapid growth of exchange rates in Belarus

The Belarusian currency market manifested it in the growth of the U.S. dollar and euro.

The U.S. currency added +4.38% last week and closed the auction at around USD/BYN 2.5367. Since the beginning of the year, the rate has remained almost unchanged, there is a movement of minimum -0.45%.

The euro showed almost the same result, having risen by +4.67% to EUR/BYN 2.4686. The lag narrowed to -14.36% from the beginning of the year.

However there is a nuance here - the trading on the Belarusian Currency Exchange ends at 13:00. A little later, at 3:30 p.m. Minsk time, nonfarm payrolls statistics of the U.S. labor market were published. NFP data is a currency market classics. It will form EUR/USD trend for some period.

Well, the latest NFP has once again supported the US dollar. By the end of the last week, EUR/USD pair fell to 0,9745. There is a chance that the decline of the pair may continue to EUR/USD at 0.9500.

Comparing all the factors, affecting the Belarusian foreign exchange market (exchange rate of Russian ruble and EUR/USD pair), we can expect a further decline of the Russian currency to RUB/BYN at the level of 4.0500-4.1000 per 100 Russian rubles at the opening of the current week.

The euro might stay at the current levels around EUR/BYN 2,4500. And the US currency in such conditions has chances to rise to USD/BYN 2.5500-2.5700.