(MENAFN) In a notable turn of events, the Russian ruble has continued its impressive rally against major currencies, reaching its highest levels against both the United States dollar and the euro since late June, as revealed by trading data from the Moscow Exchange (MOEX).
As of 9:00 AM GMT on Tuesday, the ruble stood at 87.9 against the United States dollar, marking its highest exchange rate since June 30. Simultaneously, against the euro, the ruble reached around 96.5, also achieving a five-month high. Financial experts attribute this surge to increased sales of foreign currency earnings by Russian exporters, driven by heightened export revenues.
Last month, the Russian government implemented a mandatory measure directing exporters to sell their foreign revenues and repatriate the proceeds, a move that has evidently bolstered the ruble. Since the introduction of this measure, the ruble has strengthened by an impressive 15 percent against the United States dollar and 10 percent against the euro.
Analysts point to several factors contributing to the ruble's robust performance, including a recent key interest rate hike by the central bank. Additionally, the general weakening of the United States dollar in the international foreign exchange market has played a role in the ruble's ascent. Lower demand for foreign currency on the domestic market, attributed to a decline in imports, has further supported the ruble's rally. According to a preliminary assessment by the central bank, Russian imports decreased by over 7 percent, amounting to USD22.9 billion at the end of October.
Financial experts and analysts foresee the ruble's positive momentum continuing in the near term. Evgeniy Loktyukhov, the head of the financial markets department at PSB bank, anticipates further strengthening of the Russian currency by the end of the week. As the ruble's rally persists, it underscores the intricate interplay of economic policies, market dynamics, and global factors influencing currency valuations in the ever-evolving landscape of international finance.
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