Rouble strengthens as Russian confidence rises

Oct 14th, 2009 | By | Category: Rouble News

Consumer confidence in Russia rose between July and September – news which sent the rouble surging against the dollar this week.

The latest data from the Federal Statistics Service (FSS) show that consumer prices in the country increased 10.7 per cent year-on-year in September, pill compared to 15 per cent at the same time last year.

Its confidence index rose 7 points quarter-on-quarter to -25, according to Reuters.

However, the news provider notes that the index remains well below the +1 to -5 range witnessed between mid-2006 and mid-2008, "before Russia's economy was knocked by slumping oil prices, a depreciating rouble, the downturn in export demand and the global credit crunch".

"Meanwhile, 18 per cent of respondents expect the short-term economic environment in Russia to improve, compared to 17 per cent in the second quarter," it notes.

The FSS figures further indicate that the proportion of Russians who expect their individual financial situations to improve over the next year has risen to 11 per cent from the 8 per cent reported over the last six months.

Last week, Russia's central bank bought more than a billion dollars in a bid to limit rouble appreciation.

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