The Russian ruble has recently strengthened thanks to an oil price rally that has helped ease the pressure that has been weighing heavily on the economy of the world’s largest known energy exporter.
A shift in the price of oil sends ripples across the financial market world. But among the currencies of the world, it is the Russian ruble that has the strongest relationship with oil which is why the Russian economy keeps a close track on the oil price movements. The recent rebound in oil prices, which has been going down since 2015, has helped boost the value of the Russian ruble.
Russia is known to be the world’s largest producer of crude oil and comes in second to the United States in the production of dry natural gas. It is said that more than half of Russia’s federal budget is accounted in revenues from both oil and natural gas.
The ruble was known to famously plummet to its lowest at 800 compared to the dollar back in December 2014 as oil prices also plummeted to $60 a barrel.
A move in energy and material shares are often correlated with the various commodities, the same can be said for swings of the currencies of the world’s largest known oil exporters.