The Russian ruble is exceeds The US dollar fell this month in November despite facing economic sanctions from the White House. The Russian ruble, the local currency of the BRICS countries, has appreciated by a significant 12% against the US dollar in two weeks. Although the US dollar performed better against the currencies of other BRICS countries, it was unable to contain the Russian ruble in November.
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The ruble had reached a low of 100.50 last month as the US dollar appreciated against all currencies, commodities and gold. However, the US dollar weakened in November as the Fed’s interest rate cuts remained uncertain. The dollar also fell following the release of jobs data that showed the unemployment rate had risen from the previous month’s high.
So how is Russia, a BRICS country, able to keep its currency, the ruble, above the US dollar? This article focuses on why the ruble has outperformed the US dollar in the past two weeks. guess.
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BRICS: How does the Russian currency fare against the US dollar?
Russia, a BRICS member, is taking various steps to prevent its currency from hitting new lows against the dollar. Its methods include intervening in global currency and foreign exchange markets to favor the ruble. The Central Bank of Russia is paused Exchange of foreign currencies and US dollars nationwide. As a result of this move, the Russian ruble became more traded than the US dollar on the foreign exchange market.
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Furthermore, Russia has started trading in the ruble and Chinese yuan as a set on the foreign exchange market. Russia released 800 million rubles (equivalent to $8.7 million) on the exchange market on November 3. Russia then reportedly began massive “buying” and “selling” of its currency in order to maintain the ruble’s high value.
In conclusion, BRICS member Russia has recovered the ruble from its lows and reached a comfortable position against the US dollar. However, the measures used to protect the ruble currency may not last forever, as the US dollar may definitely return.
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