MOSCOW: The Russian rouble hit its highest level in nearly two years against the dollar on Wednesday, after crossing the 80 mark against the U.S. currency in the previous session.
By 1300 GMT, the rouble was up 0.3% at 79.54 per U.S. dollar, LSEG data based on over-the-counter quotes showed, after hitting 79.32 to the dollar - its highest level since June 2, 2023 - earlier in the session.
The Russian currency has risen by over 40% against the dollar this year.
Analysts have said its strength this year is linked to the easing of geopolitical tensions and the central bank’s tight monetary policy, which has reduced demand for foreign currency.
“The defining factor for the rouble remains the balance between exports and imports, which has recently shifted in favour of exporters, as well as the high key interest rate,” said Maxim Timoshenko from Russian Standard Bank.
Bank of St. Petersburg analysts said that the rouble is also receiving support from upcoming corporate tax payments, a period when exporters convert their forex earnings into roubles in order to pay their taxes.
Against the Chinese yuan, the rouble was up 0.2% at 11.04 per yuan on the Moscow Stock Exchange. Russia’s central bank uses the yuan for foreign exchange interventions, and it is the most-traded foreign currency in Russia.
The rouble hit 10.95 to the yuan, the strongest level in 11 months earlier in the session.
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