US dollar reaches couple of years low against ruble
(MENAFN) The Russian ruble climbed to its highest level in two years against the US dollar on Thursday, buoyed by encouraging geopolitical signals and rising global oil prices, according to financial analysts.
The ruble traded below 78 per dollar in the afternoon session—its strongest performance since May 2023. Analysts attributed the surge to Russia’s announcement of a draft peace proposal and the continued rise in Brent crude oil prices, which reached $65.68 per barrel with a 1.2% increase. Brent is a key benchmark for Russia's primary export.
Yevgeny Loktyukhov of Promsvyazbank explained that optimism around renewed peace talks and oil market dynamics were providing crucial support to the ruble, helping counteract the usual dip in foreign currency inflows after monthly tax deadlines.
Russian Foreign Minister Sergey Lavrov proposed resuming Ukraine peace talks in Istanbul on June 2. Meanwhile, US President Donald Trump reaffirmed his stance against imposing additional sanctions on Russia and expressed hope for a peaceful resolution.
Natalia Pyryeva, lead analyst at Tsifra Broker, noted that strong ruble performance was also being sustained by low demand for foreign currency and robust liquidity in the forex market.
Some market watchers believe the ruble could strengthen further to 75 per dollar if diplomatic momentum continues, though they caution that without concrete progress, the rally may be short-lived.
High-level diplomacy between Moscow and Washington has resumed following Trump’s return to office. He recently held a 2.5-hour call with Russian President Vladimir Putin, which both sides described as productive.
Earlier this month, Russian and Ukrainian negotiators held direct talks in Istanbul for the first time since 2022. The discussions led to the largest prisoner exchange yet, with each country releasing 1,000 individuals.
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