Russian markets recover after days of slumps

The official rate of the Russian ruble rate rose 11 kopecks against the U.S. dollar to 29.3 on Wednesday, but fell against the euro by 12 kopecks to 42 recovering after two days of slumps, central bank data showed.

After a steep decline at the beginning of the week in the wake of the U.S. rating downgrade, the ruble opened 33 kopecks higher against the dollar to 29.40 rubles and 24 kopecks against the euro to 42.05, with investors in a positive mood following the U.S. Federal Reserve’s decision to keep its key rate unchanged at close to zero for two more years.

“On top of this, market participants are starting coming round, panic is fading away,” said Investcafe analyst Kirill Markin.

Russian stock exchanges, the MICEX and the RTS, demonstrated mixed dynamics in the middle of trade.

As of 13:30 Moscow time, the RTS index rose by 0.69 percent to 1,621.29, while the MICEX index slipped 0.18 percent to 1,495.07, as of 13:32.

“What we are seeing now, is a technical bounce back after a prolonged slump,” Markin said.

Global stocks, which had been tumbling since late Friday when Standard Poor’s made the historic cut of the U.S. top rating by one notch to AA-plus, seemed to recover their losses on Tuesday following the Fed’s announcement.

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