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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.
Yahoo
15-04-2025
- Business
- Yahoo
Russian rouble crowned world's best-performing currency as dollar declines
Russia's rouble has become the world's best-performing global currency as Donald Trump's tariff war upends financial markets. The rouble has strengthened 38pc against the dollar since the start of the year, according to data compiled by Bloomberg, following a dramatic fall in confidence in the US currency. Its returns have vastly outpaced the next best performing currencies, the Swedish krona and Swiss franc, which were up 13pc and 11pc respectively. The rouble has even beaten gold, a traditional safe haven asset for investors in times of upheaval, which has gained 23pc since the turn of the year. Silver has risen 12pc. The upturn in fortunes for the Russian currency comes as the dollar has come under pressure from the US president's trade policy, which has rocked investor confidence. Meanwhile, the rouble has been buoyed by record-high interest rates of 21pc as the Bank of Russia battles to temper inflation and support Vladimir Putin's struggling war economy. The currency also faces capital controls from the Kremlin which banned foreign companies from withdrawing their assets from Russia, requiring them to keep assets in special accounts. Sofya Donets, an economist at T-Investments, said: 'Unlike many emerging-market currencies, the rouble is not facing pressure from capital outflow, caused by global investors' retreat from riskier assets. 'Capital controls have largely shielded Russia from this.' The rouble's rise – despite sweeping Western sanctions against Russia – comes as currencies around the world have surged against the dollar after Mr Trump's trade war deepened fears of a US recession. Jamie Dimon, the JP Morgan chief executive, said a recession was the 'likely outcome', while Larry Fink, the BlackRock boss, said the American economy may already be in a contraction. Traders have increased bets on declines in the US currency later this year, with the gap between the number of so-called call and put options against the dollar dropping to its lowest level since the outbreak of the pandemic in March 2020, according to data compiled by Bloomberg. Morgan Stanley, one of Wall Street's biggest banks, predicted the dollar would continue its plunge against the euro, forecasting the single currency would reach $1.20 before the start of the year. The euro has gained more than 9pc versus the US currency since the start of the year to more than $1.13. The pound has gained nearly 6pc to more than $1.32. Investors were spooked by the currency's drop which coincided with a rise in US Treasury bond yields. Emmanuel Makonga, an analyst at Barclays, said this was 'a bad cocktail, which is reminiscent of the UK budget crisis of 2022'. However, bond yields have fallen since the US president suspended the worst of his 'reciprocal' tariffs last week. It meant some bosses on Wall Street were keen to play down the dollar's recent struggles. Jane Fraser, the Citigroup chief executive, said: 'When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the US will still be the world's leading economy, and the dollar will remain the reserve currency.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
15-04-2025
- Business
- Telegraph
Russian rouble crowned world's best-performing currency as dollar declines
Russia's rouble has become the world's best-performing global currency as Donald Trump's tariff war upends financial markets. The rouble has strengthened 38pc against the dollar since the start of the year, according to data compiled by Bloomberg, following a dramatic fall in confidence in the US currency. Its returns have vastly outpaced the next best performing currencies, the Swedish krona and Swiss franc, which were up 13pc and 11pc respectively. The rouble has even beaten gold, a traditional safe haven asset for investors in times of upheaval, which has gained 23pc since the turn of the year. Silver has risen 12pc. The upturn in fortunes for the Russian currency comes as the dollar has come under pressure from the US president's trade policy, which has rocked investor confidence. Meanwhile, the rouble has been buoyed by record-high interest rates of 21pc as the Bank of Russia battles to temper inflation and support Vladimir Putin's struggling war economy. The currency also faces capital controls from the Kremlin which banned foreign companies from withdrawing their assets from Russia, requiring them to keep assets in special accounts. Sofya Donets, an economist at T-Investments, said: 'Unlike many emerging-market currencies, the rouble is not facing pressure from capital outflow, caused by global investors' retreat from riskier assets. 'Capital controls have largely shielded Russia from this.' The rouble's rise – despite sweeping Western sanctions against Russia – comes as currencies around the world have surged against the dollar after Mr Trump's trade war deepened fears of a US recession. Jamie Dimon, the JP Morgan chief executive, said a recession was the 'likely outcome', while Larry Fink, the BlackRock boss, said the American economy may already be in a contraction. Traders have increased bets on declines in the US currency later this year, with the gap between the number of so-called call and put options against the dollar dropping to its lowest level since the outbreak of the pandemic in March 2020, according to data compiled by Bloomberg. Morgan Stanley, one of Wall Street's biggest banks, predicted the dollar would continue its plunge against the euro, forecasting the single currency would reach $1.20 before the start of the year. The euro has gained more than 9pc versus the US currency since the start of the year to more than $1.13. The pound has gained nearly 6pc to more than $1.32. Investors were spooked by the currency's drop which coincided with a rise in US Treasury bond yields. Emmanuel Makonga, an analyst at Barclays, said this was 'a bad cocktail, which is reminiscent of the UK budget crisis of 2022'. However, bond yields have fallen since the US president suspended the worst of his 'reciprocal' tariffs last week. It meant some bosses on Wall Street were keen to play down the dollar's recent struggles. Jane Fraser, the Citigroup chief executive, said: 'When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the US will still be the world's leading economy, and the dollar will remain the reserve currency.'
