RT.com
11 Jul 2025, 02:28 GMT+10
The Russian currency has also surged against the euro, boosted by government policy support
The Russian ruble surged to a two-year high against the US dollar on Thursday, buoyed by strong trade inflows and supportive government policies, according to analysts.
The ruble was trading below 75 to the dollar, marking its strongest level since 2023. The currency also strengthened to 86.5 against the euro, gaining more than 5%.
The rally caps two months of rising fortunes for the ruble, partly driven by optimism over peace talks on Ukraine. Two rounds of direct talks between Moscow and Kiev took place in Istanbul in mid-May and early June, but a third has yet to be scheduled.
Analysts say structural and seasonal factors also continue to support the Russian currency.
"Ruble strength is supported by high exports and a broad supply of foreign currency, alongside low imports and weak demand," Mikhail Zeltser of BCS World of Investments told RBK on Thursday. "Funding rates for refinancing debt and foreign trade operations are also significant," he said.
READ MORE: Trump admits Ukraine conflict difficult to tackle
Government policy is playing a key role as well, according to experts. Exporters are now required to repatriate earnings for another year, and the Central Bank has raised summer limits for hard currency sales under the budget rule. Meanwhile, the US dollar remains under pressure globally, hovering near a three-year low amid persistent trade tensions.
PSB's Denis Popov said the ruble has continued to climb despite rising geopolitical risks. He pointed to shifts in US foreign policy rhetoric under President Donald Trump as a contributing factor but noted that investors seem to be brushing off those concerns.
Analysts also cite increased foreign currency sales by major exporters in recent days, possibly linked to firms choosing not to use rubles for dividend payouts.
Alor Broker's Igor Sokolov dismissed speculation of technical errors behind the ruble's rapid rise. "This is part of a global shift," he said, noting that "macroeconomic reasons (are) driving ruble appreciation."
Some experts see room for further gains. Sokolov projected the ruble could strengthen toward 70 to the dollar, though he noted it may take time.
(RT.com)
Get a daily dose of Tennis Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tennis Times.
More Information(Photo credit: Jesse Johnson-Imagn Images) Former major league manager Lee Elia died on Wednesday, a week before his 88th birthday,...
(Photo credit: Sam Navarro-Imagn Images) The two-time defending Stanley Cup champion Florida Panthers re-signed forward Mackie Samoskevich...
(Photo credit: Joe Nicholson-Imagn Images) Tobin Heath, a two-time Olympic gold medalist and World Cup champion with the United States...
(Photo credit: Alonzo Adams-Imagn Images) All-NBA forward Jalen Williams and the big-spending Oklahoma City Thunder are finalizing...
(Photo credit: Nathan Ray Seebeck-Imagn Images) Athletics designated hitter Brent Rooker was the latest to commit to Monday's Home...
(Photo credit: Daniel Kucin Jr.-Imagn Images) The Baltimore Orioles traded right-handed reliever Bryan Baker to the Tampa Bay Rays...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
(250710) -- LATAKIA (SYRIA), July 10, 2025 (Xinhua) -- Photo taken with a mobile phone on July 10, 2025 shows burned trees in province...
Agartala (Tripura) [India], July 10 (ANI): Heavy and continuous rainfall across Tripura has triggered severe flooding in South Tripura...
Dispur (Assam) [India], July 10 (ANI): The Assam cabinet on Thursday approved the proposal to enhance the remuneration of Gaon Pradhans...
Shimla (Himachal Pradesh) [India], July 10 (ANI): Over the past nine days, torrential monsoon rains have wreaked widespread devastation...
Kingston [Jamaica], July 10 (ANI): As Mitchell Starc gears up to become just the second Australian fast bowler after Glenn McGrath...