For the first time since early February 2020, the Russian rouble broke through the 63-dollar barrier in Moscow on Friday, and it also hits a new five-year high against the euro.
Capital controls Russia put in place to protect its financial sector after sending hundreds of troops into Ukraine in late February have made the rouble the world’s best-performing currency this year, according to Reuters.
Since Feb. 5, 2020, the Russian rouble has held constant against the dollar at 63.32, but banks are offering to buy roubles at substantially worse prices.
Market participants are expected to close their positions for the weekend, and Promsvyazbank analysts expect the Russian rouble to rise early on Friday, but then fall back down to 65 to the dollar by the end.
A recovery in the value of the Russian rouble
Russia’s rouble was trading at 65.80 against the euro, down 0.8 percent from its previous high of 64.9425. Since mid-2017, it had been considerably active.
As imports into Russia have dwindled because of logistics disruptions and wide-ranging Western sanctions, the rouble is being driven by export-focused enterprises that must convert their foreign currency income.
On Thursday, Russian President Vladimir Putin praised the recent rouble surge as an example of Russia’s successful economic policies despite implementing strict western sanctions on the country’s economy.
Russian stock indexes were down.
The dollar-denominated RTS index fell by 0.3 percent to 1,136.8 points, having previously reached its highest level since February 22. At 2,287.9 points, the MOEX Russian index was up 0.4 percent.
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