The value of the Russian ruble (RUS) was seen climbing in relation to a dollar/euro basket this week. An appreciation of 0.3% on the day has helped the RUS touch an index high not seen since December 2008. Debt concerns across Europe and the United States has helped spurn the value of emerging market currencies, which is lifting the ruble against its counterparts despite internal economic tensions.
Soaring oil prices have also fed the rise of the RUS in recent trading. A hold above $99 a barrel this week was fueling resurgence in ruble values against a basket of primary currencies. Other commodity linked currencies, like the South African rand (ZAR) and Australian dollar (AUD), were also seen in ascent through most of this week.
A report out of the Carnegie Endowment for International Peace (http://www.carnegieendowment.org/2011/07/21/russia-stable-but-critical/419w) has labeled Russia as stable, but critical, noting the investment worries expressed in a variety of reports recently that highlight a lack of investment and reliance on imports and inventory for growth. It also notes that Russian GDP growth has been halved since the financial crisis of 2007/08 and that even domestic investors are reluctant to hold the RUS for very long as part of their portfolio.
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