Currently the U.S. Dollar and Russian Ruble are pairing only 6% from the pre-war mark, set on February 23rd this year the day before Russia invaded Ukraine.
The comeback being staged by the Ruble could soon see it completely making up the losses it suffered after beginning its invasion of Ukraine. It has some way to go still, however the currency has strengthened in thirteen of the last fourteen trading sessions in Moscow, matching most of the 33% decline it incurred in onshore trading.
Tuesday saw the Ruble continuing to climb in value, an increase of more than 4% on the day closing out at around 86 per U.S. dollar, edging closer to its pre-war level.
Natalie Rivett, Senior Emerging Market Analyst at Informa Global Markets Ltd. Is quoted as stating that “the Ruble’s rebound has really been the result of policies by the Central Bank of Russia to enforce buying and limit selling,” “A ceasefire between Russia and Ukraine would likely help to support the Ruble, but it’s difficult to envision any sustainable appreciation.”
Capital controls imposed by Russia’s central bank kept cash from leaving the country, which has also offered some support to the Rubles value. Moving forward Russia requires that natural gas sales be traded in Rubles, although counties are attempting to reject the move.