The EUR/RUB exchange rate is currently bearish.
Key drivers include the interest rate differential, as the Bank of Russia has set a high key interest rate of 17.5% while projecting a gradual decrease, impacting the ruble's stability. The European Central Bank's cautious approach, warning against a strong euro dampening inflation, adds pressure to the euro's value. Furthermore, economic growth projections show a slowdown in Russia, indicating weaker fundamentals for the ruble, while the Eurozone anticipates a growth boost from improved economic policies.
In the near term, the EUR/RUB is likely to trade within a volatile range, reflecting recent swings between 88.49 and 97.21.
An upside risk could arise from stronger-than-expected economic data from Germany, potentially supporting the euro. Conversely, heightened political instability or negative developments in Russia may further depress the ruble's value, leading to a wider gap between the two currencies.
