The Russian rouble gained 2.8% against the U.S. dollar at 68.31 on Monday morning, thereby producing a steep turnaround after incurring its sharpest weekly decline since early July amid fears surrounding the impact of oil and gas sanctions against Russia on revenues.
In addition to the dollar, the rouble was also up 4.4% against the euro at 72.4 while gaining 2.1% against the yen at 9.71. Despite ongoing economic sanctions and investors’ concerns over their impact on the Russian oil and gas trades, the rouble has emerged as one of the strongest performers against the dollar, trailing only the Brazilian real.
Russia’s currency lost 8% over the past week, bringing its total loss for the month to 10%. According to the Russian finance ministry, this decline is attributed to recovering imports, however, concerns over the oil embargo and price cap have also shed investor confidence.
Brent crude oil, which is the global benchmark for what remains Russia’s main export, has reached a three-week high during its final trading session before the Christmas break, rising 3.7% to $84 per barrel.