Source Pravda.Ru

Currency market may react to rightists' defeat

The fact that the rightists have obviously failed to muster over 5 percent of votes during the recent parliamentary elections in the Russian State Duma shall affect today's situation on the currency market. According to experts, the market will act negatively. On the other hand, the Central Bank of Russia will make efforts to avoid substantial ruble fluctuations, as it normally does in these cases. The ruble is not likely to loose more than 0.05 rubles.

On the other hand, mostly global events, rather than State Duma's elections usually affect the currency market. Therefore, the market will be more conservative about the possible rightists' defeat than any other market. The ruble rate will depend on the economic situation, and even if it does change, it will return to its previous position by the end of 2003 anyway.