Skip to content

Ruble Soars to 7-Year High Prompting Debate Over Targeting Rate

  • Currency strength undermines government revenue, export appeal
  • Capital controls make ruble surge more than any other currency
Updated on

The ruble surged to a seven-year high, extending a rally that Russia wants to curb and sparking a debate in Moscow on whether the central bank should target an “optimal” exchange rate.

The currency jumped as much as 1.7% to 55.44 per U.S. dollar, its strongest level since July 2015 based on Moscow Exchange prices. That took its advance this year to 35%, a world-beating gain that has continued unabated even after policymakers lowered the benchmark rate by 1,050 basis points and relaxed capital controls imposed in response to Western sanctions.