SKB-Bank reports U.S. dollar does badly despite recent success

17 May 2007 (15:16)

‘The Bank of Russia set the dollar/ruble and the euro/ruble exchange rates at 25.79 RUR per dollar and at 34.93 RUR per euro on May 16, 2007. This recent restoration of the euro was mainly due to bad retail sales in the U.S. that turned out to be worse than had been expected; the same was true of producer price index,’ SKB-Bank’s trader Sergey Vetyshev says.

‘This week will probably make the market status quo more transparent, since we are expecting a number of quite interesting reports to be published. Generally, foreign currency rates are now determined by the U.S. consumer price index; if the new reports prove that inflation is actually down, dollar might do well in the short term,’ he notes.

‘The euro/dollar rate currently comes to 1.3560 and might reach 1.3630; as for the dollar/ruble rate, it could come to 25.64 RUR per dollar soon,’ Mr. Vetyshev says.

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