Pressure on the tenge may intensify with the entry into force of new US sanctions against Russia related to the "Skripal Case", the Association of Financiers of Kazakhstan reports. "Today, new sanctions against Russia are expected to come into force, which could negatively affect the tenge rate. Thus, in the course of today's trading, the pressure on the Tenge may noticeably increase," the AFK said.
The organisation noted that the USD/KZT pair is trading at 360.0 tenge per dollar, which is 36 tiyns above the weighted average closing rate of the previous session. Despite the high volatility in foreign markets, the exchange rate of the national currency against the dollar stabilised near the level of 360 tenge per dollar last week. "In the face of increased geopolitical and trade risks, support for the national currency was also exerted by high oil prices.
In addition, tax payments supported the tenge, as on August 25, the date for payment of a number of taxes for the second quarter of 2018 was reached, including rent tax on exports, MET, VAT and other types of taxes. At the Saturday auction on the currency market of KASE, the weighted average rate of the national currency against the dollar fell by 91 tiyn, to 359.64 tenge per dollar, with a low volume of trading at 52.1 million dollar. Meanwhile, transactions on the USD/RUB currency pair with T + 1 settlements were not concluded," the association commented. The AFK also gave a brief overview of the dynamics of the US currency.
The weakening of the dollar, which began on Friday, continued in Asian trading. "So, by the moment the DXY index is at the level of 95.08 points (-0.08%). Recall that the decline in the dollar in the information plan triggered Friday's speech by the head of the Fed, Jerome Powell. In particular, Powell expects further interest rate growth, but the head of the Federal Reserve also noted that monetary conditions are approaching a neutral level," experts say.
Meanwhile, the Asian stock market began the current week with growth, supported by Friday's positive on Wall Street. Thus, the broad MSCI index for the Asia-Pacific region, with the exception of Japan, is currently at the level of 529.9 points (+ 0.08%), while the Japanese Nikkei is gaining 0.93%, being at the level of 22804.5 points.
Korean KOSPI is higher by 0.24%, while the Australian S&P / ASX 200 adds 0.25% - 6263.0 points in the course of trading.
Oil prices are mute, including amid fears that trade disagreements between the US and China will lead to a slowdown in the growth of the world economy. Meanwhile, concerns over US sanctions against Iran's oil sector, introduced in November, keep the quotes from further decline.
The barrel of Brent crude oil is traded for 76.08 dollar (-0.07%). On August 27, the US sanctions against Russia, related to the "Skripal case", will come into force. New restrictive measures are directed against foreign aid, arms sales and financing of Russia. Also, access to credit will be limited by the US government and export of products and technologies related to the national security sphere is banned.
These sanctions can be extended after 90 days, unless Russia provides assurances that it will no longer use chemical weapons. On March 4, 2018, ex-colonel of the Main Intelligence Agency of Russia Sergey Skripal, previously convicted of espionage for Russia in Britain, was found unconscious in Salisbury along with his daughter Julia Skripal. British investigators concluded that the findings were poisoned by the nerve agent A234 of the Novichok type. The Russian side refutes accusations in its address.
