Rouble Rallies Amid High-Stakes Talks

The Russian rouble surged by 2.5% ahead of crucial talks between U.S. President Donald Trump and Russian President Vladimir Putin, focusing on ending the conflict in Ukraine. As the rouble reaches record highs, this momentum may reduce inflation, just as Russia's central bank considers maintaining high interest rates.

The Russian rouble saw a significant rally of 2.5% on Tuesday, coinciding with upcoming discussions between U.S. President Donald Trump and Russian President Vladimir Putin. These talks are expected to address a ceasefire in Ukraine and seek a long-term resolution to the ongoing three-year conflict.

By 0750 GMT, the rouble strengthened to 81.40 against the dollar in the over-the-counter market, marking its highest point since June 27, 2024. Year-to-date, the rouble has appreciated over 28%. Against the Chinese yuan, the rouble increased by 1.3% to 11.22, also reaching its peak since late June on the Moscow Stock Exchange (MOEX).

This rally in the rouble could assist in reducing inflation rates if its current valuation persists long enough to impact the cost of imported commodities. Meanwhile, the Russian central bank is set to meet on March 21 to deliberate the benchmark interest rate, presently the highest in over two decades at 21%, with analysts anticipating it to remain unchanged.

(With inputs from agencies.)