Russia’s economy is suffering under the weight of war and sanctions. So why is the ruble still one of the world’s strongest currencies?

Russia’s ruble has strengthened against the dollar and euro in recent months, despite the strain that the war and sanctions are putting on the economy. The article says the currency’s recent gains reflect short-term influences and a much-changed, less active market, rather than showing that Russia’s economic problems have eased.

The official dollar rate was 81.79 rubles on 6 November, down nearly 5.5% since early September; the euro stood at 92.16, almost 10 rubles lower over the same period. Businesses’ need to buy rubles for quarterly tax payments and renewed peace-talk hopes supported the currency in October, while the US midterm results and falling oil prices could weigh on it. Foreign investors have largely left, reducing the market’s response to news; exchange-rate data is also less transparent since dollar and euro trading moved off the Moscow Exchange under sanctions.