Russia: The ruble at its highest since 2015 against the dollar | Photo credit: Shutterstock
MOSCOW, June 29 (Reuters) – The Russian ruble hit its highest level in more than seven years on Wednesday, approaching an exchange rate of 50 rubles to the dollar for the first time since May 2015.
The ruble has become the world’s best-performing currency this year, boosted by measures – including a ban on Russian households withdrawing their foreign currency savings – taken to protect the financial system from Western sanctions imposed after troops were sent in Ukraine by Moscow on February 24.
Commodity export earnings, the sharp drop in imports and tax payments in rubles by export-oriented Russian companies also explain the rise in the currency.
As of 0724 GMT, the ruble was up more than 3% at 50.22 against the dollar on the Moscow Stock Exchange, after hitting 50.01.
Against the euro, the ruble climbed 3% to 52.89, breaking above 53 for the first time since April 2015.
Before Russia launched what it calls a “special military operation” in Ukraine, the ruble traded at nearly 80 to the dollar and 90 to the euro.
A strong ruble reduces the income Russia earns from selling commodities and other goods abroad for dollars and euros, and Deputy Prime Minister Andrei Belousov said this month that the industry would be more comfortable if the ruble exchange rate fell to between 70 and 80 per dollar. (Reporting Reuters; French version Elena Vardon, editing by Kate Entringer)