Ruble hits two-year high against dollar, euro

4 May, 2022 10:25 / Updated 2 years ago
The Russian currency firms to pre-pandemic levels

The Russian ruble rose to its strongest position against the US dollar in over two years on Tuesday, amid reports that Russia’s dollar payments on two foreign bonds reached the creditors just before the deadline, averting a default.

The exchange rate reached 66.43 rubles per dollar at 13:06 GMT during Tuesday’s foreign exchange trading, Bloomberg data showed, although the Russian currency lost some of its gains later in the day. The Moscow Exchange was closed on Tuesday due to an extended public holiday.

When trading in Moscow opened on Wednesday, the Russian currency was at just above 67 rubles per dollar at 15:50 GMT, the highest level since March 2020.

The ruble has been strong against the euro as well, touching 70 in afternoon trading in Moscow, its highest point since February 2020.

This comes as the EU proposed a sixth package of sanctions against Moscow, which includes the gradual phasing-out of Russian oil imports.

On Friday the Russian central bank cut its key interest rate to 14% in the latest attempt to boost lending in the sanction-hit economy.

The euro is currently hovering around a five-year low against the dollar with soaring inflation and energy uncertainty caused by the Ukraine-related sanctions against Russia.

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