Russian Markets Hit Pre-Conflict Highs
In a notable financial development, Russia’s benchmark stock index soared to levels not seen since the onset of the Ukraine conflict. The MOEX Russian index, which is rouble-based, climbed 0.9% to reach 3,361.5 points by 1025 GMT on Monday. This peak is reminiscent of the figures from February 24, 2022, just before Russia commenced military operations in Ukraine. Concurrently, the dollar-denominated RTS index also experienced an uptick of 0.9%, settling at 1,147.5 points.
The Russian currency itself displayed resilience, with the rouble firming by 0.2%, valued at 92.29 against the dollar. However, financial experts caution that this fortification may be short-lived. Yevgeny Loktyukhov from Promsvyazbank highlighted potential weakening risks for the rouble in the near future. With the conclusion of a favorable tax period at month-end and anticipated demand for dollars and euros post-Easter holidays in the United States and Europe, the currency could see fluctuations.
Moreover, the rouble’s performance against other major currencies was mixed. It managed a slight gain of 0.1% against the euro, trading at 99.53, but saw a marginal decline of 0.1% in relation to the Chinese yuan, coming in at 12.69.
Commodity markets also played a role in the day’s financial narrative, with Brent crude oil—a global benchmark for Russia’s chief export—dipping by 0.3% to $86.71 a barrel.
These market movements come amidst a complex backdrop of geopolitical tensions and economic sanctions, with investors closely monitoring the interplay between currency valuations, stock index performance, and commodity prices.