Rogue investors who ignored the negative hype about Russia, are smiling from ear to ear after the ruble gained about 6 percent this week.
The ruble surged 6 percent this past week, opening Monday at 56.55 and closing at 53.5 on the Moscow Exchange on Friday. In the last month alone, the ruble has appreciated by more than 20 percent.
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.
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. Bond demand is driving up ruble assets, which is why the ruble is rallying.
“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 PricewaterhouseCoopers in Moscow, told RT.