While the world is getting used to the idea of Trump becoming the US President, the Russians face another big surprise. The newly elected American President somehow helped the ruble rise, but the Kremlin did not expect such a turn of events.
The country which sells oil and gas for dollars and euros is not interested in the strong national currency. The Russian Economy Ministry factored in the low ruble exchange rate when planning the budget. In other words, the weak ruble is beneficial for policymakers, so they are unlikely to stimulate its rise in the nearest term. Then, out of the blue, Trump won the election. According to Deutsche Bank, his victory made the Russian currency attractive to investors as the Fed rate decision has a minor impact on the ruble, and relations between Moscow and Washington D.C. can improve. It will be favorable for financial markets. Currently, the ruble is considered to be a good safe haven in comparison with other currencies of developing countries. Additionally, investors prefer the Russian ruble as it does not depend on the Federal Reserve and Donald Trump’s policy, Deutsche Bank believes. However, the last statement contradicts the previous ones: at first analysts at Deutsche Bank call Trump the main reason for the ruble advance, then they say that Trump’s policy does not influence the Russian currency.
