Russian Ruble Climbs on Oil Uptrend, Stocks Rally

The Russian ruble posted gains against the U.S. dollar for the third day in a row, as the demand for oil increases, causing the Russian stock market to have the highest rally since the beginning of the global slump.

Since the oil has rebounded reaching $67.50 a barrel this week, a sharp rally has followed in the Russian equities market, consequently pushing the ruble up, which had suffered severe losses as the global slump started last year. Russia’s economy is highly orientated to exporting its multiple natural resources mainly to Europe and Asia, and when the global slump struck the commodities market, Russia saw the Moscow Stock Exchange to drop even 20 percent in one session during the worst days of the crisis. Today UBS AG said that Russia’s economy scenario is improving, adding to the growing optimism in the domestic market and among exporters, helping the ruble to continue its rally.

As analysts predict that the Russian economy will revive its expansion path in the third quarter of this year or earlier, optimism is slowly gaining space among investors, and with the UBS AG report being positive towards Russia, it is very like that the MSE will post sequential gains during the next weeks.

USD/RUB fell to 30.61 from last week’s closing price of 30.83.

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