Russian Ruble Hits 35-month High

The Russian Ruble touched 69.90 against the USD, the highest since February 2023. Over the past 4 weeks, US Dollar Russian Ruble lost 6.27%, and in the last 12 months, it decreased 12.01%.

The Russian ruble strengthened to 71 per USD in May, its highest in over three years, as higher energy prices increased the influx of foreign exchange in the Russian financial system. Oil and gas prices surged since the start of March after the outbreak of war in the Middle East suspended energy exports from the region, lifted prices of key commodities, and drove major energy consumers to turn to Russia for supply alternatives. The jump in exports was consolidated by the Russian trade surplus rising to its highest in two years in March. Consequently, foreign currency sales under the government's fiscal rule from energy sales tripled to $7.3 billion in April. On top of that, the series of sanctions and the slowdown in the Russian economy limited domestic demand for foreign goods, hampering the purchases of foreign currency that further strengthened the ruble. Meanwhile, the Bank of Russia signaled it may be done cutting rates as pro-inflationary risks remain.

The Russian Ruble touched 74.26 against the USD, the highest since May 2023. Over the past 4 weeks, US Dollar Russian Ruble lost 5.24%, and in the last 12 months, it decreased 9.68%.