While economy seems to be Russia’s weak spot, it was the economic front that brought good news for the country. Experts at Deutsche Bank named the Russian ruble the most undervalued currency in developing Europe, despite a record slump. A peculiar feeling arouses when you are at a bottom, but actually just undervalued. The information did not affect the ruble at all, but grabbed the headlines of the Russian media.
Russia’s economy is recovering. Besides, Russia is the only emerging market that managed to raise its foreign exchange reserves. That is why there are some grounds indicating that the ruble’s exchange rate does not reflect the real situation in the country. “If crude is stable, I see room for the ruble to strengthen,” said Gautam Kalani, an emerging-markets strategist at Deutsche Bank in London. While Western countries gained optimism towards the ruble, the Russians are much less positive about its future. According to the Russian Public Opinion Research Center, the majority of the nationals suppose that one US dollar will worth 84 rubles in three months and 83 rubles in a year.
