According to a company announcement, the trading volumes at Alpari Russia have slumped in November by 14.7% to $92.1 billion. This would have marked a substantial monthly decline in a relatively weaker month according to reports from other brokers. However, some special factors need to be considered in light of the volatility of the Russian ruble.
During the month of November, the Russian currency has lost close to 17% after being officially free-floated. Its ongoing decline and recent market developments are likely to contribute further to this lower Russian-volumes trend in December and throughout the beginning of next year.
That said, the volatility on the foreign exchange markets could contribute to yet another rise across the board as Japanese yen volumes have been increasing in recent trading sessions as carry trades have been unwounded.
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A carry trade is when currency traders are borrowing funds at a cheap interest rate in one currency and proceeding to invest the funds in foreign currencies yielding higher interest rates.
Alpari Russia has been one of the first brokers to suspend trading on the Russian ruble in light of recent volatility. The lack of Russian ruble liquidity on the foreign exchange market is resulting in increasingly difficult market conditions which are forcing virtually all forex brokers to change trading conditions on USD/RUB and EUR/RUB.