Rouble Resilience Amid Ceasefire Talks: Economic Implications

The Russian rouble stabilizes near a six-month peak against the dollar as market participants await developments in the Ukraine conflict. The currency's strength, influenced by potential improved U.S.-Russia relations, might impact central bank interest rate decisions amid continued high inflation.

On Thursday, the Russian rouble held steady near a more than six-month high against the U.S. dollar as investors keenly awaited progress in peace talks over the Ukraine conflict.

Kyiv has expressed support for Washington's proposed 30-day ceasefire, and the Kremlin is reviewing details of the plan, hoping a deal might be reached soon. The rouble, trading at 86.45 to the dollar, marks a rebound due to potential easing of tensions between Moscow and Washington.

The currency's appreciation, partly fueled by expectations of improved geopolitical relations, poses a potential impact on Russia's central bank strategies. Despite looming inflation, experts suggest the central bank may hold interest rates steady while closely monitoring the strengthening rouble's effects on economic policy.

(With inputs from agencies.)