Russian Ruble Strengthens on News of Black Sea Ceasefire Agreement

The Russian ruble edged up to around 84.2 per USD as traders assessed ongoing ceasefire negotiations between Russia, the US, and Ukraine.

The US brokered separate agreements with Ukraine and Russia to pause attacks in the Black Sea and on energy infrastructure, though details, including the start date, remain unclear.

Washington also pledged to help facilitate the lifting of international sanctions on Russian agricultural and fertilizer exports.

The Kremlin confirmed the agreement but emphasized that it remains conditional on lifting sanctions on banks and companies involved in agricultural trade.

So far in 2025, the ruble has gained approximately 25% against the USD, reaching a June 2023 high of 81.7 in February, supported by hopes of easing geopolitical tensions.

Additionally, high borrowing costs have bolstered the currency.

In March, the Central Bank of Russia maintained its policy rate at 21% as expected while adopting a more optimistic stance on disinflation.