Aleksandr Prosviryakov: In the last month alone, the ruble has appreciated by more than 20 percent, according to Russia Today. Ruble 'miracle' pushes 2015 gains to 15%During intraday trading Friday, the ruble shot up 3 percent against the dollar, reaching a new 2015 high of 50.42 against the USD, the biggest upward gyration since October 1998, when the ruble was recovering from the August default and currency crash. The ruble surged 6 percent this past week, opening Monday at 56.55 and closing at 53.5 on the Moscow Exchange on Friday. Investors are buying rubles not just to buy rubles, but to get into the Russian bond market, which has been posting high returns compared to European markets. No one is buying the ruble for the sake of the ruble, they are buying the ruble securities in order to participate in the rally and to make more profits, Aleksandr Prosviryakov, a Treasury and Commodities at Pricewaterhouse Coopers in Moscow, told RT. In short, lower bond prices push investors to get into the game, and push up the ruble. Bond demand is driving up ruble assets, which is why the ruble is rallying.
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Tagged under Aleksandr Prosviryakov, ruble topics.