USD/RUB may remain volatile ahead of Biden’s meet with NATO

• USD/RUB is likely to remain uncertain ahead of Biden’s meeting with NATO.
• Australia has decided to ban alumina exports to Russia.
• EU is looking to discuss the embargo on Russian oil with US President Joe Biden.

The USD/RUB has been the most vulnerable asset after Russia invaded Ukraine. A high degree of volatility has been witnessed in the pair recently as the major fell sharply near 100.00 after hitting a high of 155.00 on March 7.

The Russian rouble has been through the stages of hell after the collapse of Russia’s SWIFT international payments system and sanctions on their oil imports by the US. Adding to that, various Western leaders are looking to substitute the Russian oil as early as possible.

Russian leader Vladimir Putin’s preference over an invasion against a diplomatic solution has brought a financial crunch to its economy. Interest rates in Russia are sky-rocketing while assets of various Russian diplomats and businessmen have been ceased.

The potential meeting between US President Joe Biden and NATO allies on Thursday in Brussels has raised the clouds of uncertainty again. The central agenda of the meeting is going to be the formation of a roadmap that will be destined to a ceasefire between Russia and Ukraine diplomatically. Also, the outcome of the meeting could be more sanctions on Russia.

Meanwhile, the western leaders are continuously imposing sanctions on Russia. Australia’s administration has decided to ban alumina exports to Russia, as per Reuters. Russian economy addresses 20% of its alumina needs from Australia and on that Australian government has claimed that the move will limit Russia's capacity to produce aluminum, which is a critical export for Russia.

Apart from that, the European Union (EU) has announced that it will discuss the embargo on Russian oil in a meeting with US President Joe Biden, which is due on Thursday.