Russian ruble soars past 78 vs dollar to reach two-year high

The Russian ruble strengthened sharply on Thursday, soaring past the 78 mark against the dollar to reach a two-year high, after Moscow proposed a fresh round of peace talks with Kyiv.

The ruble has firmed by more than 40 percent against the dollar this year, a rise analysts have attributed to the easing of geopolitical tensions – mainly with US President Donald Trump’s administration – and the central bank’s tight monetary policy, which has reduced demand for foreign currency.

By 0843 GMT, the ruble was up 1.3 percent at 78.80 per US dollar, LSEG data based on over-the-counter quotes showed, earlier hitting 77.95, its strongest since May 29, 2023.

Russia on Wednesday proposed holding the next round of direct talks with Ukraine on June 2 in Istanbul. Kyiv has yet to respond to the proposal.

Trump, meanwhile, said he was not yet prepared to impose new sanctions on Russia because he did not want the penalties to scuttle a potential peace deal.

That news backdrop, as well as Russia saying it had completed a draft peace memorandum, contributed to the ruble’s strength, said Promsvyazbank’s Yevgeny Loktyukhov, along with an uptick in oil prices.

Brent crude oil, a global benchmark for Russia’s main export, was up 1.2 percent at $65.68 a barrel.

The improvement of the geopolitical background and the situation on oil markets should compensate for the traditional month-end foreign currency supply squeeze after tax payments are made, said Loktyukhov.

Exporters usually convert their foreign currency earnings into rubles to pay local liabilities at the end of each month, buttressing the Russian currency.

Against the Chinese yuan, the ruble was up 1 percent at 10.90 on the Moscow Stock Exchange. Russia’s central bank uses yuan for foreign exchange interventions, and it is the most traded foreign currency in Russia.