Latest news with #ruble
Russia Today
29-05-2025
- Business
- Russia Today
US dollar hits two-year low against ruble
The Russian ruble soared to a two-year high against the US dollar in forex trading on Thursday, supported by positive geopolitical developments and favorable conditions in global oil markets, according to analysts. The Russian currency, which has been strengthening for several months, traded below 78 rubles against the dollar on Thursday afternoon, its strongest level since mid-May 2023. Russia's announcement that it has drafted a peace memorandum and rising oil prices have contributed to the ruble's strength, Yevgeny Loktyukhov of Promsvyazbank told the business daily RBK. Russian Foreign Minister Sergey Lavrov proposed holding the next round of Ukraine peace negotiations in Istanbul on June 2. Meanwhile, US President Donald Trump reiterated that he would not impose anti-Russian sanctions, expressing hope for a resolution to the conflict. Brent crude, the global benchmark for Russia's main export, rose 1.2% to $65.68 per barrel. The improved geopolitical backdrop and favorable oil market conditions should offset the typical month-end dip in foreign currency supplies following tax payments, Loktyukhov said. Oil exporters typically convert foreign currency earnings into rubles at the end of each month in order to settle local obligations, providing support to the Russian currency. Additional support for the ruble comes from ample foreign exchange liquidity in the market and weak demand for foreign currency, according to Natalia Pyryeva, lead analyst at investment firm Tsifra Broker. Some analysts see potential for further gains, projecting the ruble could strengthen to 75 per dollar this month if geopolitical momentum persists. However, they have warned that the rally may be short-lived without tangible progress. Moscow and Washington have resumed high-level diplomatic engagement following US President Donald Trump's return to the White House. He has repeatedly called for a swift resolution to the conflict and a reset in bilateral relations. Last week, he and his Russian counterpart Vladimir Putin held a two-and-a-half-hour phone call, which both leaders described as productive. Earlier this month, Russian and Ukrainian delegations met in Istanbul for their first direct talks since Kiev unilaterally withdrew from the peace process in 2022. As a result of the talks, the two sides conducted the largest prisoner swap to date, with each country releasing 1,000 individuals.
Al Arabiya
29-05-2025
- Business
- Al Arabiya
Russian ruble soars past 78 vs dollar to reach two-year high
The Russian ruble strengthened sharply on Thursday, soaring past the 78 mark against the dollar to reach a two-year high, after Moscow proposed a fresh round of peace talks with Kyiv. The ruble has firmed by more than 40 percent against the dollar this year, a rise analysts have attributed to the easing of geopolitical tensions - mainly with US President Donald Trump's administration - and the central bank's tight monetary policy, which has reduced demand for foreign currency. By 0843 GMT, the ruble was up 1.3 percent at 78.80 per US dollar, LSEG data based on over-the-counter quotes showed, earlier hitting 77.95, its strongest since May 29, 2023. Russia on Wednesday proposed holding the next round of direct talks with Ukraine on June 2 in Istanbul. Kyiv has yet to respond to the proposal. Trump, meanwhile, said he was not yet prepared to impose new sanctions on Russia because he did not want the penalties to scuttle a potential peace deal. That news backdrop, as well as Russia saying it had completed a draft peace memorandum, contributed to the ruble's strength, said Promsvyazbank's Yevgeny Loktyukhov, along with an uptick in oil prices. Brent crude oil, a global benchmark for Russia's main export, was up 1.2 percent at $65.68 a barrel. The improvement of the geopolitical background and the situation on oil markets should compensate for the traditional month-end foreign currency supply squeeze after tax payments are made, said Loktyukhov. Exporters usually convert their foreign currency earnings into rubles to pay local liabilities at the end of each month, buttressing the Russian currency. Against the Chinese yuan, the ruble was up 1 percent at 10.90 on the Moscow Stock Exchange. Russia's central bank uses yuan for foreign exchange interventions, and it is the most traded foreign currency in Russia.
Russia Today
22-05-2025
- Business
- Russia Today
Ruble strengthens to two-year high against US dollar
The Russian ruble has climbed to a two-year high against the US dollar, supported by easing geopolitical tensions and renewed hopes for resolving the Ukraine conflict. On Thursday, the Russian currency reached 78.9 against the dollar, its strongest level since mid-May 2023. It has gained about 11% since early March. The ruble, which has been strengthening for several months, has posted the strongest performance among emerging market currencies since the start of 2025, equity analyst at Alfa-Capital Alina Poptsova has told business daily RBK. 'The market is being driven in part by emotions linked to signs of a potential normalization in ties with the US and a dialogue with Ukraine on a political settlement,' said Natalia Pyrieva, chief analyst at Tsifra Broker. Analysts say the rally has also been supported by higher sales of foreign currency earnings by exporters ahead of tax and dividend payments, and falling demand from importers. Market participants are reportedly betting on the return of foreign companies to the Russian market, and a possible easing of sanctions. 'Investors are likely pricing in not just progress on diplomacy, but also a potential rollback of infrastructure-related sanctions, a return of foreign capital, and improved FX liquidity – factors that increase the ruble's appeal,' said Yuri Kravchenko, head of banking and money market research at Veles Capital. He also cited 'favorable geopolitical expectations' as the ruble's key support in recent weeks. Some experts see room for further gains, projecting the ruble could reach 75 to the dollar this month, if geopolitical momentum continues. However, they caution the rally may be short-lived unless concrete developments follow. The latest rounds of sanctions, announced by the EU and the UK this week, are unlikely to have a strong impact on the Russian currency, according to the analysts. Moscow and Washington have been engaged in high-level diplomacy since US President Donald Trump's return to office. Trump had repeatedly called for a swift resolution to the conflict and a reset in Russia-US bilateral ties. On Monday, he and the Russian President Vladimir Putin held a two-and-a-half-hour phone call, which both described as productive. Last week, delegations from Russia and Ukraine met in Istanbul for their first direct talks since Kiev unilaterally withdrew from the peace process in 2022. Russia's top negotiator, Vladimir Medinsky, later said that both sides had agreed to conduct a prisoner exchange involving 1,000 POWs each and to continue contacts once both had prepared detailed ceasefire proposals.
