USD/RUB accelerates the drop below 58.00

The greenback remains entrenched into the negative territory today, now sending USD/RUB to the area of fresh lows in the 57.70/60 band.

USD/RUB weaker on USD-sell off

Spot met further downside pressure today, testing multi-day lows in sub-58.00 levels amidst a generalized and persistent selling bias surrounding the US Dollar, particularly after the FOMC delivered a neutral message at yesterday’s meeting.

In fact, the Committee showed no intentions to accelerate its rate path for the next months, sticking to the already projected three rate hikes for this year. The disappointment among traders morphed into a sharp sell-off in USD, relegating the US Dollar Index to test the area of 5-week lows around 100.20.

Furthermore, RUB is deriving extra support from the broad-based upbeat mood in the commodities space despite the recentstays on the sidelines amidst the consolidative theme in crude oil prices, with the barrel of Brent crude now losing smalls in the $51.80 region after falling to the proximity of $50.20 earlier in the week.

USD/RUB levels to watch

At the moment the pair is retreating 0.97% at 57.82 and a breakdown of 57.63 (low Mar.16) would aim for 57.31 (low Feb.22) and then 56.57 (2017 low Feb.15). On the flip side, the next resistance lines up at 58.49 (high Mar.16) followed by 59.14 (55-day sma) and finally 59.60 (high Mar.14).