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Ruble Nears Two-Month High, Sparks Doubt Over ‘Synthetic’ Rally

  • Gains have no credence, says Toronto Dominion’s Maggio
  • Average volumes in ruble plunge to lowest in a decade
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Russian Central Bank Cuts Rates From 20% to 17%

The ruble rallied for a third day to approach the highest in more than two months, evoking skepticism from currency strategists who say the market is broken because of capital controls, forced dollar sales and ultra-thin volumes.

Russia’s currency jumped as much as 7.3% on Thursday, sealing its rebound from a collapse that followed the nation’s invasion of Ukraine and sanctions that isolated it from the global financial system. A key driver of the latest gains is the continued demand for Russia’s oil and gas in Europe and elsewhere, handing the country almost $1 billion a day in revenue.