Market Optimism Buoys Russian Rouble Despite Lingering Uncertainties

The Russian rouble dropped after a significant rise, driven by optimism following a call between Trump and Putin. The Moscow Exchange index also rose, but analysts warn of uncertainty ahead. The central bank’s rate meeting looms, with inflation a persistent concern.

The Russian rouble saw fluctuation on Friday, retreating after a nearly 5% surge against the U.S. dollar the day prior. This positivity came from a phone conversation between U.S. President Donald Trump and Russian President Vladimir Putin.

By 0820 GMT, the rouble edged down 0.9% to 90.30 against the dollar, yet it remained at its highest point since September 2024, based on over-the-counter market data. In parallel, the Moscow Exchange index climbed by an additional 2.2%, totaling a 13.7% gain since the year's start.

Trade was halted by the exchange on Thursday evening due to a 6% surge, attributed to data transmission issues. Analysts, however, urge caution against high optimism, citing uncertainties surrounding an upcoming summit and Ukraine peace talks.

(With inputs from agencies.)