Latest news with #IskanderLutsko
Russia Today
16-04-2025
- Business
- Russia Today
Ruble is this year's best-performer
The Russian ruble has emerged as the world's top-performing currency this year, outpacing even gold, Bloomberg reported on Tuesday, citing calculations based on over-the-counter market data. The ruble has surged 38% against the US dollar, marking the strongest gains of any currency so far this year. It has also outperformed gold – long seen as a safe-haven asset – which has risen 23% to record highs since January. Analysts cited a combination of geopolitical developments and monetary policy decisions by the Bank of Russia as key drivers of the ruble's performance. 'Unlike many emerging-market currencies, the ruble is not facing pressure from capital outflow, caused by global investors' retreat from riskier assets,' Sofya Donets, an economist at T-Investments, told Bloomberg, noting that capital controls 'have largely shielded Russia from this.' Other economists pointed to high borrowing costs. In October, the Bank of Russia hiked its benchmark interest rate to a record 21% to curb inflation and has held it steady since. Experts said the move dampened demand for imports, and by extension, foreign currency. Meanwhile, regulations requiring exporters to convert a portion of their foreign earnings into rubles, a measure introduced in response to Western sanctions, have further strengthened the currency, they noted. READ MORE: White House explains Russia's absence from tariff list Analysts also cited improved US-Russia relations, spurred by joint efforts to resolve the Ukraine conflict, as boosting foreign investor interest in Russian markets and the ruble. Iskander Lutsko, the head of research at Istar Capital, said international investors are increasingly turning to countries that maintain ties with Moscow to access high-yielding ruble assets. He also predicted that the conditions currently boosting the ruble are likely to persist for some time. 'There are no clear drivers for the ruble's weakening at this stage with a rate cut off the table for the upcoming quarter,' Lutsko said. The ruble rally comes amid a weakening of the US dollar, which hit a six-month low on Monday following tariff hikes announced by Washington. Earlier this month, US President Donald Trump introduced 'reciprocal' tariffs on nearly 90 trade partners, citing unfair trade practices. While Trump paused most of the new tariffs for 90 days, except on China, global financial markets have taken a beating as a result. Economists say the US president's actions have shaken investor faith in US assets and cast doubt on the dollar and Treasuries as reliable safe havens. The ruble, however, has been relatively immune to the tariff war, as Russia has not been targeted.
Russia Today
13-03-2025
- Business
- Russia Today
Investors betting on Russian return to Western markets
Investors are quietly betting that US President Donald Trump's recent initiatives to negotiate a peace deal in the Ukraine conflict could lead to Russia's return to Western financial markets, Bloomberg reported on Thursday. The US and its allies have slapped numerous rounds of sanctions on Moscow since the escalation of the Ukraine conflict in 2022. Russia has been cut off from Western investments and its largest stock exchange has been sanctioned. In recent weeks, traders at a London brokerage have been seeking to buy Russian securities, an asset largely avoided over the past three years, Bloomberg reported. Their focus has been on buying dollar-denominated bonds issued by Russian energy giant Gazprom. Investors are speculating that heavily discounted Russian securities could surge in value if Ukraine-related sanctions imposed on Moscow are lifted, the outlet stated. Investors 'understand that as soon as there's a thaw, these discounts will collapse,' Iskander Lutsko, Dubai-based head of research and portfolio management at Istar Capital, told Bloomberg. Money managers report that sales teams are assessing interest in staking on the ruble through non-deliverable forwards (NDFs), a financial derivative that allows investors to bet on a currency's future value without actual exchange. By not involving physical Russian assets or individuals, they remain outside the scope of current sanctions. Major US investment banks Goldman Sachs and JPMorgan Chase have reportedly been brokering ruble-linked derivative contracts to meet growing investor interest in Russian-related assets. 'There's an aggressive search for securities of Russian issuers around the world,' Evgeny Kogan, a Moscow-based investment banker, told Bloomberg. 'Investors in general are asking how quickly they can enter the Russian market.' According to the report, Russia's potential reintegration into the Western financial system could unlock hundreds of billions of dollars.
