MOSCOW: The Russian rouble surged against the U.S. dollar and China’s yuan after President Vladimir Putin outlined potential deals with the U.S. on rare earth metals and aluminium as part of the future agreement to end the war in Ukraine.
At 0830 GMT the rouble was up 1.1% at 86.80 against the dollar in the over-the-counter market, the strongest since August 9, 2024. The rouble strengthened 1.3% to 11.81 against China’s yuan, the most traded foreign currency in Russia.
Russian President Vladimir Putin offered the U.S. on Monday the opportunity for joint exploration of the country’s rare earth metals deposits, as well as the supply of aluminium to the U.S. domestic market, under a future economic deal.
U.S. President Donald Trump said earlier that “major economic development transactions with Russia” would take place. Within two hours of Trump’s statement, Putin chaired a meeting with his ministers and economic advisers on rare earth metals.
Russian rouble at highest vs dollar
“For a long time, the rouble’s exchange rate included a geopolitical risk premium. As progress is made in negotiations, it is naturally narrowing,” BCS brokerage analysts said, predicting that the rouble could soon hit 85 to the dollar.
The Russian currency has gained over 23% against the dollar this year, mostly on expectations of better relations with the United States under President Donald Trump.
Dollar/rouble futures on MOEX, which serve as guidance for over-the-counter rates, were down 1% at 87.75. The Russian central bank set the official exchange rate at 88.20.
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