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Investors hopes for an end to the Ukrainian war as the release of an American teacher in Russia strengthened.
The deal was to secure the return of Marc Fogel, who has been in custody since 2021, the currency rose nearly 3% to 93.8% on Wednesday.
The move expanded Donald Trump’s rally to the White House, with the Ruble up 21% since the beginning of the year. The U.S. president has promised to end the Ukrainian war, and the White House said Fogel’s release is “in the right direction” to end the conflict.
Kremlin spokesman Dmitry Peskov said the deal was the result of “strengthening” contact with the White House, adding that Russian prisoners detained in the United States would be released in exchange.
“The expectations of negotiations between Russia and the United States for Ukraine have made investors somewhat optimistic,” said Alexandra Prokobenko, a researcher at the Carnegie Russian European Center in Berlin.
“If negotiations become complicated and this optimism fades away, it will be even more difficult for the ruble.”
Analysts said the sales of the Chinese yuan (Russia’s most traded foreign currency) from the Russian central bank also increased the currency, which intervened in the market to support the exchange rate.
Rising energy prices also support the ruble by increasing Russia’s export revenue. Brent Intrude, an international oil benchmark, has risen 7% since early December, while gas prices have risen even more.
The Ruble plummeted after Russia’s invasion of Ukraine in 2022, recording a trough, prompting many Western sanctions to effectively cut Russia and remove Russia from its global financial system.
Although authorities stabilized the exchange rate by tightening currency controls, the ruble remained volatile and was attacked by further U.S. energy sanctions late last year.
