Russia's ruble price back on track: key interest rates and trade with China support the currency in Putin's comfort zone.

Russia's ruble price back on track: key interest rates and trade with China support the currency in Putin's comfort zone.

As financial professionals, it is important that we keep an eye on the latest developments in the world of money and currencies. A recent report from www.businessinsider.de reports that the Russian ruble continues to appreciate against the US dollar. In the last three months, the ruble has gained around ten percent against the dollar and is now back in the “comfort zone” defined by President Putin between 80 and 90 rubles per dollar for the first time in months.

The head of the central bank, Elvira Nabiullina, attributes this upward trend to interest rate increases and a decoupling of exports from the dollar. In addition, China's yuan also plays an important role. The Bank of Russia has raised key interest rates in large steps to 13 percent to keep inflation in check and support the ruble. In addition, the bank directly intervened in foreign exchange transactions and stopped purchasing foreign currencies. Exporters have been ordered to exchange part of their foreign exchange earnings for rubles, and Russia is increasingly seeking to conduct its foreign trade in rubles or Chinese currency.

The overall dollar downward trend is also a factor in the ruble's strength, as the inflation rate in the US fell and expectations emerged that interest rate hikes in the US are complete and the US Federal Reserve could cut rates.

This could impact the market and the financial industry in many ways. The latest developments indicate that Russia wants to become increasingly independent of the dollar and therefore of international sanctions. In addition, a stronger ruble could make imports from the dollar area more expensive, which could have consequences for Russian companies and consumers.

Overall, it is important to continue to closely monitor the development of the ruble and other currencies as this may have an impact on the global economy. According to a report by www.businessinsider.de, the strength of the ruble remains an important factor in the geopolitical and economic landscape.