Posted By Global Banking and Finance Review
Posted on January 21, 2025
MOSCOW (Reuters) -The Russian rouble surged past the 100 mark against the U.S. dollar on Tuesday, supported by forex sales by the central bank and exporting companies as well as by market optimism over the easing of Russia-U.S. tensions.
The rouble had strengthened by 1.2% to trade at 99.75 to the dollar by 1500 GMT, over-the-counter market data showed. The rouble was 1.6% firmer against China's yuan at 13.62 in trading on the Moscow Stock Exchange (MOEX).
U.S. President Donald Trump, who was inaugurated on Jan. 20, said he was ready to meet Russian President Vladimir Putin and discuss an end to the war in Ukraine. Putin said he was open to dialogue with the new U.S. administration on Ukraine.
"Positivity is coming from both ends – externally due to the anticipation of potential talks between Trump and Putin with a possibly favourable outcome, and locally due to a currency offer from exporters," a dealer at a major Russian bank said.
"However, there is a nuance, which is the risk of uncertainty from the external environment, which could cause swings in the currency market," added the dealer, who declined to be identified.
The rouble started the year slumping to its weakest level since March 2022, but has strengthened by about 10% since, becoming the best performing currency across emerging markets in 2025.
The rouble is supported by increased forex sales by the state and stronger prices for oil, Russia's main export commodity, which offset the impact of U.S. energy sanctions imposed on Jan. 10.
(Reporting by Gleb Bryanski. Editing by Ed Osmond and Mark Potter)
