Russia is the main energy supplier to Europe, and this week, as the crude oil continued to extend gains reaching the highest values since it tumbled last year after the global slump, the ruble is gaining, as demand for Russian natural resources are influencing the national currency positively.
The Russian ruble is leading gains among emergent market currencies today after the crude oil touched $79 a barrel, fact which is extremely favorable to the biggest country in the world since oil is its main export product. JPMorgan Chase & Co. stated that Russian stocks are more appealing in the current global economic scenario, creating attractive conditions in Moscow equities market, posting a significant rise today. Russian stocks remain the best performing globally in 2009 as the crude oil rates more than doubled since the beginning of the year, attracting investors to Russia, which had suffered one of the biggest impacts among global powers, mainly in its financial sector.
The Russian ruble, which has its fluctuations controlled by the Bank of Russia, is witnessing better rates due to injection of foreign capital in Russian stock markets, as well as the increased demand for Russian exports provides support for the national currency to gain. As long as the crude oil rates continue to rise, the Russian currency is likely to remain strong.
USD/RUB traded at 29.30 as of 14:17 GMT from an opening rate of 29.43 today.
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