Rouble Resilient: Defying Sanctions and Strengthening Against the Dollar

The Russian rouble rose to a one-week high despite U.S. President Donald Trump's large-scale sanctions threat. Buoyed by prospects of improved Moscow-Washington relations, the rouble gained against major currencies. Promsvyazbank analyst suggests U.S. threats may not escalate as talks are underway.

The Russian rouble has defied recent threats from U.S. President Donald Trump, marking a more than one-week high. This surge comes even as Washington threatens Moscow with heavy sanctions to push for a peace deal with Kyiv. So far this year, the rouble has performed well against the dollar, largely due to potential improvements in U.S.-Russia relations, which could lead to conflict resolution in Ukraine and possibly ease sanctions against Russia.

By 0841 GMT, the rouble had gained 1.5% to trade at 88.62 to the dollar, its strongest level since late February, even after Trump cautioned Russia with potential banking restrictions and tariffs. Interestingly, Trump also extended an olive branch to Russian President Vladimir Putin amid ongoing discussions.

Meanwhile, Russian forces continue their advance in the Kursk region. Denis Popov, an analyst from Promsvyazbank, expressed skepticism that the U.S.'s negative rhetoric and threats would quickly escalate, noting that talks with Russia are still in the initial stages. The rouble also gained against the Chinese yuan, and Brent crude oil prices slightly declined by 0.1% to $70.28 per barrel.

(With inputs from agencies.)