The Russian ruble (RUB) has been on a rollercoaster ride against the US dollar, with the exchange rate hitting a high of 93.98 on Tuesday, the highest level since February. This surge comes as the market reacts to the soaring oil shipment data from Russia.
A report published on Tuesday revealed that Russian oil shipments have reached their highest level in eleven months, with cargos worth over $2.15 billion sold last week. This increase in sales is attributed to rising oil demand from countries like India, China, and Pakistan. The country is also selling crude oil at a price higher than the price cap set by Western governments, with Russian urals trading at $82.15, its highest point since 2022.
In addition to the booming oil industry, the Russian economy is benefiting from rising prices of industrial metals like aluminum, copper, palladium, gold, and platinum. Signs of a recovering global economy have boosted demand for these key metals.
However, new sanctions imposed by the UK and the United States on Russian industrial metals are causing uncertainty in the market. Analysts believe that prices of copper, nickel, and aluminum are likely to move higher in the short term, leading to volatility in the market.
As the US dollar strengthens, the USD/RUB exchange rate is expected to continue rising, with buyers targeting the crucial resistance point at 95.54. A breakthrough above this level could indicate further upside potential, while a drop below the support at 93 may signal a downturn in the exchange rate.Overall, the future of the Russian ruble remains uncertain as global economic conditions continue to evolve.
