Ruble enhances compared to US dollar
(MENAFN) The Russian ruble has surged to its strongest level against the US dollar in two years, boosted by easing geopolitical tensions and renewed optimism over resolving the Ukraine conflict. On Thursday, the ruble reached 78.9 per dollar, marking its highest point since May 2023 and gaining roughly 11% since early March.
According to Alfa-Capital equity analyst Alina Poptsova, the ruble’s recent performance is the best among emerging market currencies in 2025 so far. Natalia Pyrieva, chief analyst at Tsifra Broker, attributed the rally partly to growing hopes of improved relations between Russia and the US and progress toward a political settlement in Ukraine.
The currency’s strength is also supported by increased sales of foreign currency earnings from exporters ahead of tax and dividend deadlines, along with reduced demand from importers. Market players are optimistic about foreign companies returning to Russia and a potential easing of sanctions.
Yuri Kravchenko, head of banking and money market research at Veles Capital, noted that investors are factoring in not only diplomatic progress but also a possible rollback of sanctions, the return of foreign investments, and better foreign exchange liquidity—factors that enhance the ruble’s appeal. He added that positive geopolitical expectations have been a major driver behind the currency’s recent gains.
Some experts predict the ruble could strengthen further, potentially reaching 75 per dollar this month if diplomatic momentum continues. However, they caution that this rally may be temporary without concrete developments.
New sanctions recently announced by the EU and UK are expected to have limited impact on the ruble, analysts say.
Diplomatic efforts have intensified since US President Donald Trump’s return to office, with Trump advocating for a quick resolution to the conflict and improved US-Russia relations. On Monday, Trump and Russian President Vladimir Putin had a lengthy and reportedly productive phone conversation.
Last week, Russian and Ukrainian delegations met in Istanbul for the first direct talks since Ukraine halted peace negotiations in 2022. Russia’s lead negotiator, Vladimir Medinsky, later confirmed an agreement for a prisoner exchange of 1,000 individuals from each side and plans to continue discussions after preparing detailed ceasefire proposals.
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