USD/RUB sinks to lows near 64.60, Brent cuts losses

The Russian currency has gathered extra tractions vs. the buck today, sending USD/RUB to test lows near 64.60.

USD/RUB lower on oil, USD

Spot has come under further downside pressure as the recovery of crude oil prices saw the barrel of Brent crude climbing to session highs in the mid-$49.00s, in turn supporting the demand for RUB.

In addition, the persistent selling bias around the greenback has been also collaborating with the daily bearish note in the pair.

Data wise, US Initial Claims and Durable Goods Orders have come in above estimates, while Markit’s Services PMI has missed consensus for the current month. In Russia, FX Reserves held by the CBR ticked higher to $398.2 billion in the week ended on August 19 vs. $395.7 billion from the previous week.

USD/RUB levels to watch

At the moment the pair is losing 0.59% at 64.77 and a break below 63.41 (low Aug.18) would aim for 62.75 (2016 low Jul.14) and finally 62.04 (low Nov.4 2015). On the up side, the initial hurdle aligns at 65.31 (high Aug.24) followed by 67.15 (high Jul.29) and then 68.85 (20