FX.co ★ Ruble Rally Pauses

The Russian ruble is currently trading at approximately 84.5 against the US dollar, stabilizing after a significant rally earlier this year which saw it reach a peak of 81.7 in June 2023. The currency's appreciation was driven by optimism surrounding a potential de-escalation in geopolitical tensions, aided by ongoing ceasefire discussions between Russia and the United States. Ukraine has already consented to a 30-day ceasefire, although President Putin has been cautious, emphasizing that any settlement should ensure Ukraine cannot rearm. This year, the ruble has seen an impressive 25% increase in value against the US dollar, bolstered by elevated interest rates. In March, the Central Bank of Russia maintained its policy rate at 21%, aligning with expectations, and adopted a more positive outlook on reducing inflation.