Rouble Rises: Impact of U.S.-Russia Talks and Economic Dynamics

The Russian rouble strengthened due to anticipated discussions between U.S. President Trump and Russian President Putin on ending the Ukraine war. On Monday, the rouble rose against the dollar and yuan, bolstered by expectations of better U.S.-Russia relations. Analysts caution, however, that this rally might not endure.


Devdiscourse News Desk | Moscow | Updated: 17-03-2025 14:49 IST | Created: 17-03-2025 14:17 IST
Rouble Rises: Impact of U.S.-Russia Talks and Economic Dynamics
Russian President Vladimir Putin. Image Credit: ANI
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The Russian rouble showed significant strength as financial markets reacted positively ahead of a scheduled conversation between U.S. President Donald Trump and Russian President Vladimir Putin. The discussion aims to address the ongoing conflict in Ukraine following optimistic dialogues between officials in Moscow.

At 0840 GMT, the rouble appreciated by 1.2% against the dollar, reaching a value of 84.50. It briefly peaked at 83.37, marking its highest value since June 27, 2024. Moreover, against the Chinese yuan, the rouble climbed by 2.0%, the strongest since June 27, 2024, reflecting trader sentiments on the Moscow Stock Exchange.

This currency surge is largely attributed to hopes for improved U.S.-Russia relations. Yet, financial analysts remain cautious, remarking that the rouble's upward trajectory may soon level off. They point out that foreign currency inflows are diminishing while imports might rise, which will influence the central bank's interest rate decision on March 21, currently set at 21%.

(With inputs from agencies.)

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