Dollar hits two-year low against ruble
According to a report by webangah News Agency, the US dollar dropped against the Russian ruble on Thursday, reaching its weakest position in two years on Russia’s foreign exchange market.
Analysts attribute the ruble’s appreciation to positive political developments and favorable conditions in the global oil market. The Russian currency, which has shown consistent strengthening in recent months, fell below 78 rubles per dollar on Thursday afternoon – its strongest exchange rate as mid-May 2023.
Yevgeny Luktyukhov, an official at Promsvyaz Bank, told buisness newspaper RBC that Russia’s announcement of drafting a peace proposal coupled with rising oil prices have bolstered the ruble. Meanwhile, Russian Foreign Minister Sergey Lavrov has proposed holding the next round of Ukraine peace talks on June 2 in Istanbul.
Concurrently, former US President Donald trump reiterated his opposition to imposing anti-Russian sanctions and expressed optimism about resolving the crisis soon.
Brent crude oil, Russia’s primary export benchmark, rose 1.2% to $65.68 per barrel. Luktyukhov noted that improved global political conditions and stable oil markets should offset typical end-of-month currency supply drops when exporters convert foreign earnings into rubles for tax payments – a process that typically supports Russia’s currency.
“Abundant currency liquidity and weak demand for foreign currencies are additional factors supporting the ruble,” added Natalia Piryeva, senior analyst at Sifra Broker investment company.
Some analysts predict further ruble gains could push it to 75 per dollar this month if positive political momentum continues but warn this upward trend may prove short-lived without substantive progress.
