Russian Ruble Gained Nearly 2% Against the Dollar

The Russian currency rose in illiquid on- and offshore trade against the U.S. dollar on Friday following two weeks of hefty losses, with the country’s central bank further restricting access to foreign currency. At 12:15 GMT, the ruble traded nearly 2% stronger against the U.S. currency at 116.4 on the Moscow exchange, while offshore trading quoted Russia’s currency at 116.29 and 130.00 to the U.S. dollar, between 6-9% up on the day.

Still, the ruble is down more than 40% since the start of the year, by far the worst-performing currency in the world.

Against the euro, the Russian currency was broadly stable at 126.00 in Moscow. One day earlier, the euro jumped to 132.4175 per ruble.

Ruble and major challenges

Trading on the equity market remained largely closed on Friday by order of the country’s central bank. It limited trading in stocks and bonds after the West imposed economic sanctions against Russia over its invasion of Ukraine.

The central bank introduced restrictions on local firms’ access to foreign-currency cash for the next six months on Thursday. As a result, from March 10 to September 10, local companies and entrepreneurs who want Japanese yen, British pounds, euros, and U.S. dollars in cash can receive only up to $5,000 worth, and only to pay for overseas work trips. 

Last month, the central bank more than doubled interest rates to 20%. It is due to meet on Friday. 

The country’s economy is facing its most severe crisis since the collapse of the Soviet Union. Even before Vladimir Putin’s decision to invade Ukraine the state of the country’s economy was far from being ideal. However, sanctions created additional challenges.

The ruble dropped around 30% against the U.S. dollar in Moscow since Russia invaded Ukraine on February 24.