August 10, 2018 / 11:06 AM / 8 days ago

UBS Wealth Management urges clients to cut rouble 'overweight' positions

LONDON (Reuters) - UBS Wealth Management called on clients to cut back any Russian rouble overweight positions on Friday, saying the threat of U.S. sanctions was likely to take a toll on the currency.

A vendor places Russian rouble banknotes into a cash register at a grocery shop in the Siberian city of Krasnoyarsk, Russia, August 6, 2015. REUTERS/Ilya Naymushin

“We expect pressure on Russia to rise further in the near term, overshadowing sound fiscal and monetary policies,” Tilmann Kolb, an analyst in the UBS Wealth Management Chief Investment Office.

“Accordingly, in our FX strategy, we close our overweight in the Russian rouble, which we positioned against a basket of euro and U.S. dollar.”

The recommendation relates to UBS WM’s Emerging Market FX strategy which clients receive. UBS WM has no position on the rouble in its CIO Global tactical asset allocation which is embedded in the mandates of its funds.

Reporting by Marc Jones

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