The ruble posted the second largest gains against the greenback among emerging market currencies in 2022
The Russian ruble has recorded the second strongest rise among emerging market currencies against the US dollar this year.
In the first four months of the year, the Russian currency reportedly gained 6.2% against the greenback, while the rating-leading Brazilian real jumped more than 14% against the dollar.
The Colombian peso rose 2.5%, while the South African rand and Mexican peso rose against the dollar by 1.2% and 0.9% respectively.
The Turkish lira fell 9.7% against the greenback, the Argentine peso fell 10.8% and the Egyptian pound saw a significant drop of 14.9%. The Indian rupee and Thai baht fell 2.3% and 2.7% respectively.
The ruble’s performance is attributed to the flow of export earnings in the first months of 2022, according to Iskander Lutsko of Moscow-based broker ITI Capital, who also said daily revenue hovered around at least $1.7 billion. over the past two months.
“As a result, in April the growth of the ruble accelerated, exceeding 18%, moreover, the Russian currency is the only one in the world that strengthened against the dollar in a month,” said Lutsko, quoted by RIA Novosti.
He added that the dollar index jumped more than 5% in April, hitting a 20-year high, as US Treasury yields rose ahead of a new round of Fed rate hikes in early May.
The ruble fell to historic lows of around 150 to the dollar amid the introduction of sanctions against Moscow in response to its military operation in Ukraine, but has since nearly doubled in value.
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