Russia’s ruble extended rally that’s taken it to the strongest level versus the dollar in four years prompting a warning from one of President Vladimir Putin’s staunchest allies that the gains may be overdone.
The ruble was stronger for a fifth day against the dollar, trading up as much as 2.2%, even after Russia on Monday loosened capital controls by reducing the amount of foreign currency exporters are required to convert.
In the currency market rouble is by far the best performer globally this year with gains of about 30% against the dollar.
“The ruble is strengthening at a crazy pace — We need to be careful not to overdo it,” Belarus President Alexander Lukashenko quipped at a meeting with Putin on Monday.
Still, he added that while the gains had baffled Western nations, they were expected by Belarus and Russia and that this would be a “time of opportunity” for their economies.
The ruble’s surge on Monday triggered a decision by the central bank to allow exports to convert 50% of their revenue rather than 80%, an emergency measure introduced as part of the capital controls after the invasion to protect the ruble.
