Russian ruble continues to increase in price
The Russian currency this afternoon surpassed 64 rubles per dollar and headed for a 5-year peak against the euro.
Earlier this afternoon, the ruble increased by 0.9% against the USD, to 63.96 rubles per USD. The price of this currency is approaching a 27-month high of 62,6250 rubles per USD set at the end of last week.
Against the euro, the ruble rose 1% to 66.38 rubles per euro, close to its highest level since June 2017 of 64.9425 rubles per euro, also reached late last week.
Ruble is the world’s best performer this year, according to Bloomberg data. Since the beginning of the year, the ruble has appreciated more than 11% against the USD. The currency is supported mainly by the capital controls that Russia applied to protect the financial sector after its military campaign in Ukraine.
Geopolitical tensions between Moscow and the West, and the fear of new sanctions packages imposed on Russia are at the center of investors’ attention. However, their impact is mitigated by the policy of forcing the conversion of 80% of foreign currency revenue into local currency for Russian exporters, among other restrictions.
“The ruble today only slightly increased, but the rate may gradually return to 62 rubles to the dollar,” analysts at Promsvyazbank forecast.
The Russian stock market also rallied today. The RTS index rose 1.7% to 1,150 points. MOEX Index rose 1.6% to 2,343 points.
Ha Thu (according to Bloomberg, Reuters)
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