Russian Rouble Gains Strength After Its Biggest Weekly Loss

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Russian Rouble Gains Strength After Its Biggest Weekly Loss

Russian Rouble Gains Strength After Its Biggest Weekly Loss

The Russian Rouble saw a lot of volatility during the Monday trading session and gained a sizable upside. This comes after the Russian currency had its worst week ever since July 2022. At that time, there was fear that the export revenue of Russia would be impacted because of gas and oil sanctions.

Just last week, the Russian Rouble was down by 8%, and for the month, it was down by 10%. This was mainly due to the price cap and the oil embargo placed by the western countries. According to the finance ministry, the decline in Russian Rouble has to do with the recovery in imports.

However, the Russian Rouble has been gaining strength against the US Dollar as of late. Just recently, Rouble has gained 2.8% against its American counterpart. Similarly, Rouble had a 4.4% gain against the Euro and around 2.1% when compared with Yuan.

For the next few days, trading activity in the Rouble will remain light as most of the markets are closed, and investors are on holiday. In addition, Russian experts also convert their foreign reserves into local currency. So that's also a factor that strengthened the Rouble against the other currencies.

Russian Rouble - One Of The Top Performers Against the US Dollar

For the current year, 2022, the Russian Rouble has become one of the best performers against the US Dollar. This was due to the reduced imports and capital control measures adopted by the country. However, the Russian Rouble lost the top spot as Brazil's currency gained the upper hand.

Brent Crude oil which serves as a benchmark for Russian oil, is also at a multi-week high. When checked last time, it was trading close to $84 per barrel.

With the year 2023 only a few days away, the next question is whether Russian Rouble will maintain its strength against other currencies or not. For now, the problems faced by Russia don't seem to end, as the country is still engaged in conflicts outside its own lands.

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