The Russian ruble demonstrated robustness last Friday, September 23, 2022. This development happened as the US dollar continued its relentless jump and Russian President Vladimir Putin ordered partial military mobilization in his country.
His proclamation last week is an escalation of the Russian offensive in Ukraine. We agree that the foreign exchange market this year is frantic, especially since the ongoing armed conflict between Russia and Ukraine broke out last February.
We think we can help our avid readers who hold Russian ruble units manage their foreign currency by posting this foreign exchange-related report on our portal.
The Russian ruble strengthened, capping off a whipsaw week for the foreign currency at the end of last week, per the report posted on the Internet by Business Insider’s stock market website Markets Insider.
Russia’s fiat currency gained 4.5 percent versus the US dollar. It hit 56.70 Russian rubles against US$1, surging to a high not witnessed since August 25, 2022.
This high move by the Russian ruble makes it an outlier among other international currencies as they carry on weakening against the unstoppable US dollar.
Russia’s native currency rallied while the greenback reached a fresh 20-year high. US$1 is equivalent to 57.82 Russian rubles at the time of writing this foreign exchange-related news per the exchange rate data posted on Xe.com.
Before the Russian ruble strengthened last Friday, it edged lower earlier last week in response to Russia’s mobilization of more military troops into Ukraine.
Russia’s fiat currency weakened versus the US dollar last Wednesday, September 21, 2022, when Putin proclaimed plans to call up 300,000 additional Russian military troops and threatened nuclear weapons use.
During the early Wednesday morning trading, the Russian ruble plummeted to as low as 62.45 roubles against the US dollar or roughly 3 percent. Then, it pared losses to recuperate to 60.736 roubles, which is down by 0.56 percent.
Putin declared in a televised speech that the Russian military was activating the reservists, and this event marked the country’s first-ever instance of such mobilization since World War II.
The Russian Federation’s president since 2012 hinted at the deployment of his country’s nuclear weapons in Ukraine as well as the Kremlin carried on suffering steep military losses.
Putin relayed that Russia possesses many kinds of weapons of mass destruction with components that are, in some cases, more contemporary than those of the North Atlantic Treaty Organization’s countries.
We have observed that the Russian ruble has gone from being one of the strongest and weakest global currencies this 2022.
We are well aware that it has witnessed wild swings since Russia’s armed conflict versus Ukraine erupted seven months ago. The Russian ruble collapsed to less than a penny during the war’s early days.
Then, it rebounded sharply, finding renewed strength to become the best-performing foreign currency against the greenback.
This rally happened after the Central Bank of the Russian Federation imposed strict capital controls, drastically tightened interest rates, and sought to control cash outflows immediately after Ukraine’s invasion.
We think the Russian people will benefit from the latest rally of the Russian ruble, but only if this foreign currency sustains this climb.