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MOSCOW (Reuters) -The Russian rouble briefly strengthened past the level of 80 to the U.S. dollar on Wednesday before rebounding, but remained close to its highest level since June 2023.
By 1000 GMT, the rouble was up 0.4% at 80.30 per U.S. dollar, LSEG data based on over-the-counter quotes showed. The Russian currency has risen by over 40% against the dollar this year.
The rouble’s exchange rate did not appear to suffer any major impact from new sanctions against Russia, announced
by the EU and Britain on May 20, which targeted Russia’s "shadow fleet" of oil tankers and financial firms.
Analysts have said the rouble’s strength this year is linked to the easing of geopolitical tensions and the central bank’s tight monetary policy, which has reduced demand for foreign currency.
"The strengthening of the rouble is largely due to the prolonged rigidity of monetary policy, which stimulates interest in rouble assets, against the backdrop of a positive geopolitical track," said Denis Popov from PSB bank.
Against the Chinese yuan, which Russia’s central bank uses for its foreign exchange interventions and is the most-traded foreign currency in Russia, the rouble was up 0.7% at 11.09 per yuan on the Moscow Stock Exchange.