Meanwhile, the Russian rouble weakened as a sharp midday sell-off on the Moscow bourse prompted foreign investors to repatriate their cash.
For the Russian rouble, Nomura thinks the ruling tandem has perhaps chosen the worst possible moment to unveil its plans for a role reversal.
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The Singapore dollar and the Russian rouble are managed by a range, instead of one-way direction, and so are also good candidates for QE play.
Plans to involve Russia in economic and financial discussions were postponed in 1998 when the Russian rouble was devalued, plunging the country into an economic crisis.
For now, generally stable to strengthening currencies, like the Brazilian real and Russian rouble, have investors willing to buy bonds in the local market instead of offshore.
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In 2005, when China last released the yuan from its dollar peg, analysts believed that the U.S. dollar, the euro, the Japanese yen and the South Korean won dominated the basket, but that the basket also included the U.K. pound, the Thai baht and the Russian rouble.
Commodity currencies including the Russian rouble are responsive to expectations of a rise in commodity prices fuelled by Fed easing, while investors view the Mexican peso, along with the Canadian dollar, as a play on any economic recovery in the US because of their strong trade links.
Foreign investors have been pulling out of Russian markets mainly because they fear for the rouble.
The rouble's devaluation has pepped up Russian industry, at least for now.
This makes some Russian oil-fields barely profitable even after the rouble devaluation, and is encouraging western firms to redirect investment to the Middle East, where oil is cheaper to extract.
The squeeze on the rouble comes just as the benefits to the Russian economy of the huge devaluation in 1998, which made imports plunge and pepped up local production, are wearing off.
Fear grew that the Russian central bank might be forced to allow a devaluation of the rouble.
The company also suffered from the rouble's devaluation, because it kept its cash in Russian government securities, which defaulted.
The Russian authorities have attempted to squirrel away some of their petrodollars, and avert upward pressure on the rouble, by setting up a stabilisation fund to capture extra revenues.
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