The Russian ruble has experienced a surge in value against major currencies, reaching its highest level in six weeks. According to trading data from the Moscow Exchange (MOEX), the ruble traded above 94 rubles to the US dollar for the first time since September 13. Additionally, the ruble also saw an increase against the euro, trading at 99.9 rubles to the euro.
This significant rebound in the ruble can be attributed to new regulations implemented by the Russian government. The regulations stipulate that Russian exporters must sell their foreign currency revenues and bring the proceeds back into the country. This measure, introduced on October 12, aims to support the currency, which had previously reached its lowest value since March 2022.
Various industries are covered by these regulations, including energy, metals, chemical, forestry, and farming. Analysts believe that the market needed time to consolidate after the introduction of these measures, which led to a decline in the ruble. However, Michael Zeltser, a market analyst at BKS Express, stated that the ruble’s surge against the dollar is not yet over. He predicts that Western currencies may continue to fall while the ruble remains strong.
Another factor contributing to the ruble’s strength is the high price of global oil. As Russia is a major oil exporter, the increase in oil prices positively impacts the country’s currency. Additionally, upcoming tax payments by Russian exporters are expected to support the ruble further.
Dmitry Gritskevich, the head of banking and financial markets analysis at PSB, believes that the ruble will continue to strengthen as tax payments are made. He predicts that the ruble will consolidate within the range of 90-95 rubles to a dollar.
Overall, the ruble’s recent gains against major currencies can be attributed to the introduction of regulations requiring Russian exporters to sell their foreign currency revenues. These measures aim to support the currency and have led to a rebound in its value. Additionally, high global oil prices and upcoming tax payments by Russian exporters further contribute to the ruble’s strength. Analysts believe that the ruble’s upward trend is likely to continue in the near future.