The Russian ruble approached a 5-year high against the euro, and stocks rose

Image showing Russian ruble coins in this illustrative photo taken on March 25, 2021. REUTERS/Maxim Shemetov/Illustration

(Reuters) – The Russian ruble held above 64 against the dollar on Monday, jumped briefly to 62.71 per dollar, and climbed towards its highest level in nearly five years against the euro, supported by continued restrictions on currency trading.

The ruble is the world Top performing coin So far this year, though, this is due to artificial support from the capital controls that Russia imposed to protect its financial sector in late February after it sent tens of thousands of troops into Ukraine.

Alexander Dzheauev, an analyst at Alpha Capital, said that the situation in the local currency market has remained the same for several weeks, and the ruble continues to hold steady as the supply of foreign currency exceeds the demand.

Central bank data showed on Monday that Russia’s current account surplus more than tripled from January to April to $95.8 billion, buoyed by rising revenue from imports and lower imports.

“It seems that the equilibrium point has not yet been found,” Djeuev said of the ruble rate.

It was not clear whether President Vladimir Putin’s demand for gas payments in rubles had also bolstered the currency.

At 1500 GMT, the ruble was 1.5% stronger against the dollar at 63.59, close to its strongest since early February 2020 at 62.6250, hit on Friday. Read more

“Current capital control measures have brought the ruble back to pre-pandemic levels,” Rosbank analysts said in a note, and predicted that the ruble would fall to 90 against the dollar by the end of the year.

“In the near future, a new FX market regulator may adjust these restrictions, but until then, the USD/RUB consolidation may stick to the lower end of the range 63.0-70.0.”

Against the euro, the ruble rose 1.6% to 66.05, staying near its strongest level since June 2017 at 64.9425, which it touched on the Moscow Stock Exchange on Friday.

Attention is focused on the confrontation between Moscow and the West and fears of a new package of sanctions to punish Russia for what it calls a “special military operation” in Ukraine. But its impact is mitigated by the requirement that export-focused firms convert foreign currency and other restrictions.

“Today’s rise in the ruble may be moderate, but the dollar rate may gradually fall to 62,” Promsviaz Bank analysts said in a note.

Russian stock indices jumped higher.

RTS dollar-denominated index (.IRTS) It rose 3% to 1,165.7 points. Russian ruble-based MOEX index (.IMOEX) It rose 2% to 2354.1 points.

Promsvyazbank said the MOEX index is likely to enter the 2400-2500 range this week.

For a Russian stock guide see

For Russian Treasuries see

Reporting by Reuters. Editing by Barbara Lewis

Our criteria: Thomson Reuters Trust Principles.