Over the past month, investment funds focused on Russia withdrew about $ 150 million from the country. It is noted that the outflow for the last week of October amounted to $ 63 million. This is almost twice the figure of the previous week, when $ 32 million was withdrawn by investment funds.
Experts also predict a further continuation of the outflow of capital for at least the next two years. The transaction between Rosneft and TNK-BP, contrary to expectations, could not prevent the withdrawal of funds from the Russian Federation. Recall that on October 22, Rosneft announced the takeover of TNK-BP, which makes it the largest oil company in the world.
According to Vedomosti with reference to the EPFR, there are many reasons for this situation. However, among them three main ones can be distinguished. The first such reason is the high dependence of the Russian economy on fluctuations in oil prices, which greatly increases the risks of investors. The connection of capital outflows with unfavorable trends in the oil and gas sector seems natural. But a number of experts rightly point out the fact that no lasting correlation between the increase in the cost of oil and capital inflows has been observed in recent years. Continue reading
Currency forecast: the dollar strengthens its position
The dollar spent the whole week to strengthen its position and succeeded in this. The euro cannot boast of such achievements against the backdrop of Draghi’s statement that bearish risks for the eurozone remain. Concerns of monetary authorities about the prospects for the European economy are pulling the euro down, and this is expected to affect the situation as a whole.
The past week has clearly demonstrated that economic statistics from the United States has been and remains a fundamental factor for the market. According to Forex Club, America’s stock indices twice made serious attempts to move away from their multi-year highs, losing more than one percent during trading sessions. Yield on ten-year US bonds also fell by 0.07 percentage points to 1.95%.
Thus, a significant impetus to the growth of the dollar was given by the speech of the ECB President Mario Draghi, during which he was less optimistic in assessing the prospects for the eurozone economy. Closer to the close of the week, the USDX added 1.2%. Continue reading