The Rouble strengthened the most out of any currency yesterday, as it went up just under 2% against sterling. The Rouble has been one of the main currency winners since the start of 2016, clawing back 15% against the US dollar; and with oil prices now exceeding $50 a barrel, the Russians are now over their budget rate for their oil. Russia’s recent recovery can be attributed to the economic performance of other countries: the falling US dollar as Federal Reserve Chair, Janet Yellen, struggles to implement their second interest rate hike; and the news that the Chinese economy is on the mend after the longest run of gains in nine years in the Hong Kong stock exchange, thereby ending the speculation about a potential economic crisis that has been a shadow hovering over global currencies and economies throughout much of 2016.
If you are buying or selling currencies, the markets are certainly moving quickly, so it’s important to stay on top of events. Contact your trader today to discuss your currency strategy.