Rouble surges after Russian holiday period

Jan 12th, 2010 | By | Category: Rouble News

This week saw the rouble rocket to its biggest one-day gain against the dollar since March 1999 as stocks in Russia opened the trading year in Moscow with a bang. The Russian currency increased to 29.3045 per dollar, pills driven by positive economic news, stuff investor enthusiasm for global markets and $80 oil.

Analysts have predicted, however, that the rouble will not advance much more against the dollar this year, instead anticipating that it will hover around the 28-per-dollar mark.

While Russian markets were closed after the new year for Eastern Orthodox Christmas, oil prices surged above $80 per barrel on account of the cold weather experienced across Europe and the US, a weakening dollar and growth in China's imports and exports. When the markets subsequently opened, the currency moved from 30.25 roubles to the dollar to 29.25 at Monday's close.

Some market observers have suggested that Russia's markets were simply catching up with the events that occurred during the holiday period. In previous analysis of the rouble's behaviour last year, Merrill Lynch said the currency could appreciate by 20 per cent in 2010 after rising in line with higher oil prices in 2009.

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