MOSCOW: The Russian rouble, supported by news of a three-day ceasefire in the war in Ukraine, strengthened against the US dollar and was flat against the Chinese yuan on Tuesday, as the markets prepared for holidays at the start of May.
At 1130 GMT, the rouble was up 1.4% at 81.50 against the US dollar, LSEG data based on over-the-counter quotes showed. The Russian currency has risen by about 38% against the dollar so far this year.
“The geopolitical factor continues to play an important role in the dynamics of the rouble,” Denis Popov from PSB said.
Most analysts expect the rouble to weaken later this year, tracking the price of oil, Russia’s main export commodity, which has been falling on concerns international trade wars will weaken the global economy and destroy demand.
Finance Minister Anton Siluanov said on April 23 Russia needs to boost its fiscal reserves to ensure at least three years of budget spending coverage if oil prices remain low for an extended period.
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