Market on Tenterhooks as Putin Wants to React to Ruble Gains
- Government concerned stronger currency may worsen budget pinch
- Bank of Russia pledged to avoid interventions after free float
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Now that President Vladimir Putin has said it, the market is wondering what Russia will do about a stronger ruble.
“The ruble is strengthening despite price volatility on commodity markets,” Putin said on Tuesday at a meeting with Prime Minister Dmitry Medvedev in the Black Sea resort of Sochi. “Of course we need to think about how and what we’ll be doing in the near future in connection with these factors.” The Russian currency extended its declines against the dollar after Putin’s comments, weakening the most since June 24.