The Russian ruble hit fresh highs Wednesday, a day after the central bank announced it had widened the trading corridor it uses to manage volatility in the currency.
Russia’s currency closed at 28.55 rubles against the dollar, its highest level since December 2008. It traded at 33.31 rubles against a basket of euros and dollars, its highest level in two years.
A wider trading corridor is intended to promote a stronger ruble and help the central bank keep a lid on inflation, which has surged amid a crippling drought last summer and a rapidly growing money supply.
The currency may strengthen to 33.0 rubles versus a basket of dollars and euros as traders try to test the currency’s new trading corridor, which was widened to five rubles by the central bank, VTB Capital said.
Source: online.wsj.com