The Ruble is undervalued by about 10% due to sanction risks, said Erlan Syzdykov, the global head of the emerging markets department of a European investment company Amundi.
“I think the current ruble exchange rate reflects not only the current macroeconomic picture, but also investors' concerns that the elected US President will pursue a more aggressive foreign economic policy towards Russia”, - Sydzykov said. He also noted that because of the sanction risks the ruble is undervalued by about 10% “in comparison with the macroeconomic indicators that should be reflected in the ruble exchange rate.”
Earlier, the chief economist of Alfa-Bank Natalia Orlova told Vedomosti that the Euro could reach a rate of 100 rubles if the Democratic candidate Joe Biden wins at the presidential election in the US; the Republican candidate Donald Trump’s reelection would be better for the ruble.
She also noted that the US presidential election, which is due on November 3, is the main cause of tension in the foreign exchange market. After the election we can expect the domestic currency to gain ground.