Russian Rouble Rises Amidst Geopolitical Tensions

The Russian rouble has strengthened to its highest point in nearly two weeks against the dollar. The currency's resilience is attributed to subdued imports and expectations of possible conflict resolution in Ukraine, despite recent drone attacks on Moscow by Ukraine. Strong exports and a geopolitical risk premium support the rouble.

The Russian rouble has climbed to a near two-week high against the dollar, bolstered by reduced imports and optimism about resolving the conflict in Ukraine. This development comes despite Ukraine's recent drone attack on Moscow, which resulted in fires and flight diversions.

By 0807 GMT, the rouble strengthened 0.9% to 86.80 per dollar in over-the-counter trade, marking its peak since February 27. However, against the Chinese yuan, the rouble slightly dipped by 0.1% to 11.89. The currency's strength against the dollar is buoyed by hopes of improved Moscow-Washington relations possibly easing sanctions.

Russian officials remain unfazed by potential U.S. banking sanctions. Analysts suggest the rouble's stability is maintained by strong exports, subdued imports, and the geopolitical climate, with Brent crude oil rising 0.3% to $69.49 per barrel, further supporting Russia's economy.

(With inputs from agencies.)