USD/RUB dips to lows near 63.50

The Russian Ruble is gathering further traction vs. its American peer on Tuesday, dragging USD/RUB to fresh lows in the mid-63.00s.

USD/RUB lower on oil recovery

The pair is losing ground since Friday’s tops around 65.30 following a combination of a renewed offered bias around the greenback and a sustained recovery in crude oil prices.

In fact, the barrel of Brent crude has managed to rebound from lows in the $44.00 neighbourhood seen a couple of weeks ago to today’s vicinity of the critical $50.00 mark, lending at the same time extra legs to RUB.

Collaborating with the downside, USD lost some momentum after the US Dollar Index clinched highs in the mid-101.00s during last week, levels last seen in March 2003.

Data wise today, US Existing Home Sales and the Richmond Manufacturing Index area due, while CBR’s holdings of FX Reserves are only due in the Russian docket (Thursday).

In another direction, RUB speculative net longs have decreased to the lowest level since early October during the week ended on November 30 and according to the latest CFTC report.

USD/RUB levels to watch

At the moment the pair is retreating 0.42% at 63.64 facing the next down barrier at 63.25 (low Nov.9) followed by 61.95 (low Oct.25) and then 61.85 (low Oct.10). On the other hand, a breakout of 65.30 (high Nov.18) would open the door to 66.21 (200-day sma) and finally 66.48 (high Nov.14).