The ruble market on the Moscow Exchange surged in the midst of volatile trading. It has rebounded from last week’s plunge. A strong trade balance, such as capital restrictions and a decrease in imports, is contributing.
Last week, it plummeted on the suggestion of central bank rate cuts and additional rate cuts. The outlook for deregulation of capital regulations and the possibility of government bond defaults (default) were also disgusting.
As of 0807 GMT (5:07 pm Japan time), the ruble has risen by nearly 5% against the dollar to 63.47 rubles. It had risen to 55.80 rubles on the 25th, the highest since February 2018.
It is 65.40 rubles, up 6% against the euro. On the 25th, it had risen to a high of 57.10 rubles for the first time in seven years.
“Overall fundamentals haven’t changed much, and the possibility of returning to 60-63 rubles against the dollar is undeniable,” said Roco Inn Best’s head of investment.
Russian stocks are mixed. The dollar-denominated RTS index is up 4.2%. The ruble-denominated MOEX Russia index is down 0.3%.
William Douglas has worked as financial analyst until his retirement. He is a well-known research director and portfolio manager for more than 5 years. After many years in the market, he dedicated all his time to write articles highlighting different financial problems and world news. He also cover news from all over the world.