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  • Russia's ruble jumps to pre-invasion levels thanks to Moscow's rescue measures, putting pressure on the US

    From markets.businessinsider.com

    Russia's ruble has risen sharply back to where it was before the country's forces invaded Ukraine in late February, after the government redoubled its efforts to shore up its tumbling currency. The move higher in the ruble has added to the pressure on the US, which is ramping up economic sanctions on the country, even though analysts say the Russian economy remains in a dire state. Russia's currency was up around 4% Thursday morning ET, so that $1 bought around 79.40 rubles. It was stronger than where it stood on February 24, the day before Russia's invasion of Ukraine, when $1 equaled around 82 rubles. The currency ... (full story)

I laugh Rubles!!!
what a lesson, sounds more like a fast slap on a face LOL
one thought is not enough but two are too many
The ruble's rebound is a function of capital controls, not economic fundamentals- the Rouble isn't a freely convertible currency anymore so the official exchange rate isn't terribly relevant."
Price discovery is really non-existent... for practical purposes, only Russia is in the ruble market.
Warning: A Dangerous Subversive: 1% of comments CoCed
thanks to Moscow's rescue measures, putin pressure on the US ??
LOL
Quoting RossEdwards
The ruble's rebound is a function of capital controls, not economic fundamentals- the Rouble isn't a freely convertible currency anymore so the official exchange rate isn't terribly relevant." Price discovery is really non-existent... for practical purposes, only Russia is in the ruble market.
Whoever trades with Russia and buys their exports in Rubles is in the Ruble market. The fact that Russia has had to stop a lot of imports because of sanctions means they can't spend their rubles so the value of the Ruble is going up. The Ruble's value increase is not solely a function of capital controls (although they do play a role), I'd say the main reason behind the Ruble's appreciation is market forces.

Also not mentioned in the article was the fact that the Ruble is now somehow pegged to the price of gold. That doesn't seem to be true though, since the price of gold has been constant pretty much all week but the Ruble has appreciated more than 10% this week.
That'll learn 'em!
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  • Posted: Apr 7, 2022 12:48pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 6  /  Views: 2,511