The lack of a clear perspective on the dollar rate to the world’s major currencies “warms up” the uncertainty in the world financial market
The weak dollar, which declined in value from the beginning of the year to most of the world’s currencies, from the euro to the Russian ruble, from the British pound sterling to the Kenyan shilling, led to a record rise in prices for oil and metals, brought the exchange indexes to new heights in the United States and Asia . However, at the end of the year, oil and metals markets enter the turbulence zone. The change of the main person in the US Federal Reserve, as well as the expectation of an increase in the rate at the last meeting of the regulator this year, do not bring relief: the experience of previous increases in interest rates showed that, contrary to the canons, the US dollar did not recover, but continued to collapse in value. Now it costs to the basket of six key currencies of the world by 8.92% less than at the beginning of this year.
Therefore, on Tuesday, November 28, there is a correction of prices for oil and metals. The barrel of oil WTI loses 53 cents or 0.91%, falling to 57.58 dollars, as a result of which the growth from the beginning of the year practically “evaporates”, to 1.04%. The barrel of Brent oil is cheaper by 55 cents or 0.86%, to 63.29 dollars, keeping the stock of growth since the beginning of this year at 7.87%. Nevertheless, it is not yet clear what will happen to the US dollar and the US economy, what are the risks of impeachment of US President Donald Trump and the subsequent turn of the economic policy, the markets can not constantly raise commodities. In addition, China’s debt problem, as well as the “bubble” in the real estate market of the Middle Kingdom, also causes fears of investors: after all, overheating in the real estate market in Europe, for example, has already led to a gradual collapse of prices in the market in especially overheated segments.
Consumption and production of metals – everything is under big question in the world, including due to digitalization and robotic processes. Hence – and a downward correction in metals prices, which is observed today. Copper loses 1.87%, falling to 6812 dollars per ton at the auctions on the London Metal Exchange. The increase in the price of copper again turned out to be less than two in comparison with the appreciation of gold, although until recently the situation was different.
Zinc is cheaper by 1.01%, to $ 3,166 per tonne, nickel is in the minus 2.07%, lead is losing 1.36% of its price for the day, and tin – 0.15%. Precious metals are also in the negative zone: the troy ounce of gold is cheaper by $ 0.98 (minus 0.08%) to $ 1293.57, while silver is down in price by 0.23% or 4 cents to $ 17.01.
Against this background, the strengthening of the ruble continues: the exchange rates of the US dollar and the euro, according to data at 15:28 Moscow time on November 28, are 58.35 and 69.34 rubles, respectively.