He besides surpassed gold results—for a long time seen as safe assets— whose value increased by 23% to evidence levels since January.Analysts indicated a combination of geopolitical events and decisions of the Bank of Russia in the field of monetary policy as key factors affecting the results of the ruble."Unlike many emerging marketplace currencies, rubel does not face capital outflow force due to global investors withdrawing from risky assets" – told Bloomberg Sofya Donets, economist at T-Investments, noting that capital control "has mostly protected Russia from this".Other economists pointed to advanced borrowing costs.
In October, the Bank of Russia raised its mention interest rate to evidence 21% to reduce inflation and has since kept it steady.
Experts have stated that this decision has undermined request for imports and, consequently, abroad currencies.Meanwhile, regulations requiring exporters to convert any of their abroad income into rubles, introduced in consequence to Western sanctions, further strengthened the currency, they noted.Analysts besides cited the improvement of the US-Russia relations, motivated by joint efforts to resolve the conflict in Ukraine, as an increase in the interest of abroad investors in the Russian and ruble markets.
Iskander Lutsko, head of investigation at Istar Capital, said global investors are increasingly addressing countries that keep relations with Moscow to gain access to high-income ruble assets.
He besides predicted that the conditions presently strengthening the ruble would most likely last for a while."At this phase there are no clear weakening factors for ruble and the interest rate simplification is not included in the next quarter", Said Lutsko.The emergence in ruble is due to the weakening of the US dollar, which reached its lowest level on Monday from six months after the tariff increases announced by Washington.
At the beginning of this period US president Donald Trump introduced ‘reciprocal’ tariffs on almost 90 trading partners, citing unfair trading practices.While Trump stopped most of the fresh fares for 90 days, but China, global financial markets were as a consequence severely damaged.
Economists say that the U.S. President's actions shaken investor's religion in American assets and cast a shadow on the dollar and Treasury bonds as a reliable safe haven.
However, Rubel was comparatively resistant to the tariff war due to the fact that Russia was not the target.
Translated by Google Translator
source:https://www.rt.com/business/615828-ruble-best-forming-currency-bloomberg/
