Resurgent Russian ruble turns back time

The Russian currency strengthened to just under 72 rubles to the US dollar and to 77 against the euro during trading on the Moscow Exchange on Friday.

The ruble has now reached its strongest level versus the dollar since last November and against the euro going back to June 2020.

The ruble dropped to historic lows after Moscow launched its military operation in Ukraine in February, after which the EU and US along with allies imposed unprecedented sanctions targeting the country’s financial system. On March 7, the Russian currency fell to as low as 150 rubles to the dollar and 164 to the euro.

Thanks to a series of steps undertaken by the Russian government, including imposing capital controls and requiring payment for natural gas in the domestic currency, the ruble has since more than doubled in value.

The latest package of EU sanctions against Russia introduced on Friday has failed to stop the ruble rally.

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