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Ruble surges as comeback against dollar continues

The Russian currency has been bolstered by capital control measures introduced by the government

The Russian ruble gained ground against major currencies on Monday, edging above 94 rubles to the US dollar for the first time since September 13, trading data from the Moscow Exchange (MOEX) showed.

The ruble also rose against the European single currency, trading at 99.9 rubles to the euro as of 09:30 GMT, also a six-week high.

Analysts link the ruble’s rebound to a recent regulation ordering Russian exporters to sell their foreign currency revenues and repatriate the proceeds. The measure was announced on October 12 to support the currency, which saw its value drop to its lowest since March 2022 earlier this month. The regulation covers 43 Russian exporters from the energy, metals, chemical and forestry industries, as well as farming.

The Russian ruble has finally come out of last week’s decline. The market needed that week for consolidation after the introduction of the foreign currency earnings repatriation regulation,” BKS Express market analyst Michael Zeltser told Forbes Russia. In his view, the ruble’s surge against the dollar “is not over yet” and after some stabilization Western currencies “risk continuing to fall, while the ruble will be ready for an offensive.

Analysts note that high global oil prices also lend support to the Russian currency, as do the upcoming tax payments by Russian exporters.

READ MORE: Putin orders new measures to strengthen ruble

The ruble is likely to continue strengthening on the payment of taxes, which will support prices of government securities. We expect that tax payments will allow the ruble to consolidate in the range of 90-95 rubles to a dollar,” Dmitry Gritskevich, head of banking and financial markets analysis at PSB, predicted.

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