The value of the Russian ruble (RUS) was seen climbing in relation to a dollar/euro basket this week. An appreciation of 0.3% on the day has helped the RUS touch an index high not seen since December 2008. Debt concerns across Europe and the United States has helped spurn the value of emerging market currencies, which is lifting the ruble against its counterparts despite internal economic tensions.
Soaring oil prices have also fed the rise of the RUS in recent trading. A hold above $99 a barrel this week was fueling resurgence in ruble values against a basket of primary currencies. Other commodity linked currencies, like the South African rand (ZAR) and Australian dollar (AUD), were also seen in ascent through most of this week.
A report out of the Carnegie Endowment for International Peace (http://www.carnegieendowment.org/2011/07/21/russia-stable-but-critical/419w) has labeled Russia as stable, but critical, noting the investment worries expressed in a variety of reports recently that highlight a lack of investment and reliance on imports and inventory for growth. It also notes that Russian GDP growth has been halved since the financial crisis of 2007/08 and that even domestic investors are reluctant to hold the RUS for very long as part of their portfolio.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
