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Putin’s Sochi Olympics to Boost Oversold Ruble: Market Reversal

Russia’s ruble is poised to rebound from a five-year low, trading patterns suggest, as next month’s Winter Olympics promise to bring in billions of dollars.

The biggest monthly slide since May 2012 has left the currency the most oversold in 1 1/2 years, according to a measure known as Stochastics, which tracks the velocity of an asset’s price movement. The ruble’s level of about 34 per dollar doesn’t take account of the strength typically seen in Russia’s current account in the first quarter, nor the $3 billion the government estimates will pour into the country as a result of hosting the Sochi games, said Maxim Korovin of VTB Group.