The Russian ruble jumped to a seven-year high against the dollar and the euro on the Moscow Stock Exchange on Tuesday, supported by capital controls and the prospect of favorable tax payments at the end of the month.
At 14:23 (GMT), the ruble was stronger by 2.1% against the dollar at 54.44. Earlier it reached 54.20 per dollar, the strongest point since June 2015.
Against the euro, the currency rose 1.8% to 57.80, earlier reaching 57.0250, its strongest point since May 2015.
The ruble, which has become the world’s best-performing currency this year, is driven by Russia’s high export earnings, a sharp drop in imports and a ban on households withdrawing foreign currency savings.
Top policymakers used Russia’s annual economic forum in St. Petersburg last week to highlight the ruble’s recent strength. There are concerns that this could put a strain on the economy as it leads to a recession amid tough sanctions on what Moscow calls a “special military operation” in Ukraine.
BCS Express said the ruble was likely to remain heavily affected by a market imbalance between supply and demand.