The Russian ruble advanced today with the help of both the general risk-positive market sentiment and the cease-fire between Ukraine and pro-Russian separatists. The rally is not necessary positive for Russia’s economy that struggles to avoid recession.
Good news from China bolstered currencies of emerging markets, including the ruble. The currency lost a huge part of its value after the United States and the European Union implemented sanctions against Russia for its supposed involvement in the conflict in Ukraine. The ruble strengthened after the Ukrainian government and pro-Russian rebels reached a cease-fire agreement, but the rally may be detrimental to the Russian economy as analysts argue that the currency is still overvalued and should decline even more.
USD/RUB fell from 38.6654 to 38.5877 as of 12:55 GMT today.
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