Russian Ruble up on rising commodities rates

Russian Ruble up on rising commodities rates

09-17-2009 14:22

The Russian Ruble gained on the back of rising commodities rates as a result of increasing confidence among investors, on which Russian trading options became more attractive in worldwide markets, providing support for the rates of the Russian currency. Another rate cut also favored the Ruble.

Rising commodities rates

The Central Bank of the Russian Federation cut interest rates in Russia, which resulted in more traders seeking Ruble-priced investments, stimulating the Russian currency to climb against the majority of the 16 most popular currencies. The strong increase in confidence among investors provided mostly support to emerging markets, which attracted traders to countries like Brazil and Russia. The rising commodities rates, such as crude oil, has a positive influence on the Ruble and the Russian economy since the country possesses many natural resources. Russia mainly exports to regions that already show a sustainable economic recovery, such as the Eurozone.

Russian Ruble up

The sixth rate cut within five months in order to refinance leads to increasing attractiveness of Russian assets as the stimulus measures have been received optimistically by the world financial society. The continues crude oil rate rises also favor outlooks to suggest that the Russian currency will continue its strength until the end of 2009.