In the midst of a long-drawn war, declining oil prices, stiff sanctions, and an economy that’s on the downhill, Russia’s ruble
has been rising.
In fact, it is the world’s best-performing currency so far this year, according to Bank of America, with gains of over 40%. The ruble’s stunning rally in 2025 marks a sharp reversal from the past two years when the currency had depreciated dramatically.
What’s powering the Russian currency?
The strength in the ruble has less to do with a sudden jump in foreign investors’ confidence than with capital controls and policy tightening, market watchers told CNBC. The weakness in the dollar comes as an added bonus.
