MOSCOW: The Russian rouble strengthened against the U.S. dollar on Monday, following a surge in oil prices due to potential supply risks from the Israel-Iran conflict.
By 1200 GMT, the rouble was up 1.3% at 78.65 per U.S. dollar, according to LSEG data based on over-the-counter quotes. The Russian currency is up by about 40% against the dollar since the start of the year.
Analysts, most of whom consider the rouble overvalued, noted that the new geopolitical risks have reduced the likelihood of new sanctions against the Russian energy sector, which G7 leaders were scheduled to discuss at their meeting in Canada.
“The current situation may also affect the discussion of new sanctions on Russian oil, possibly postponing the decision on their implementation,” said Sofya Donets from T-Bank.
Against the Chinese yuan, the most traded foreign currency in Russia, the rouble weakened by 0.2% to 10.90 on the Moscow Stock Exchange.
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