Ruble Steady Amid Western Sanctions, Jumps to Highest Level Against US Dollar

JAKARTA – Currency Russian ruble continued to strengthen against major currencies at the start of last week, to jump to its highest level against the dollar since late January. This is based on trading data from the Moscow Exchange (MOEX).

Recorded Ruble reached 88.4 against dollar AS , where this level is the highest since January 30. The Russian currency also strengthened against its European counterpart, trading around 96 to the euro, also hitting a five-month high.

Analysts noted that the Russian currency has strengthened over the past week amid higher sales of foreign currency earnings by exporters ahead of this week’s ruble-denominated dividend payments, and tax payments.

Positive sentiment towards the Ruble is supported by expectations that the Central Bank will maintain its tight monetary policy, and may introduce another rate hike this year. The regulator has kept the key interest rate at 16% since December to contain inflation, which is almost double the target.

The central bank’s deputy head, Aleksey Zabotkin, said last week that the regulator could decide to raise interest rates at a meeting in June.

(acres)