Russian ruble becomes best currency in 2025, performs better than gold

The Russian currency has been strengthening against the backdrop of the decline in the rate of the US dollar amid trade wars.

Photo: freepik.com by ededchechine

Russian rubles

Since the beginning of the year, the Russian ruble has shown the strongest growth against the dollar compared to other global currencies. The ruble has even outperformed gold, which is traditionally denominated in dollars, according to Bloomberg.

The agency reports that the ruble has appreciated by 38% against the dollar in over-the-counter trading since the start of the year, while gold — one of the most popular safe-haven assets — has risen by 23% in the same period.

For comparison:

• the Swedish krona gained 14% against the dollar,
• the Swiss franc – 11%,
• silver – by 12%.

Bloomberg attributes the ruble's appreciation to mounting pressure on the US dollar due to escalating trade wars under US President Donald Trump, as well as specific factors related to Russia's geopolitical situation and central bank policy — most notably, high interest rates.

Unlike many emerging market currencies, the ruble is not under pressure from capital outflows caused by foreign investors pulling out of risky assets, experts note. This is a consequence of earlier sanctions, which had already driven foreign investors out of Russian markets. Meanwhile, the gradual normalization of diplomatic relations between Russia and the US has sparked growing interest in Russia's high-yield assets.

Dollar hits six-month low

On Monday, April 14, the US dollar hit a six-month low amid investor concerns about US economic policy, Bloomberg notes. The latest actions by the Trump administration have undermined confidence in the US dollar and Treasury bonds as safe investment instruments, according to the agency.

In addition to high interest rates, which suppress corporate and consumer demand for imports, and Russia's relative immunity to trade wars, the ruble is also being supported by foreign currency sales from the National Wealth Fund, aimed at offsetting falling oil prices.

However, the combination of declining oil prices and a strengthening ruble poses challenges for the Russian budget, as it reduces export revenues. The Russian government has based its 2025 budget on an average exchange rate of ₽96.5 per US dollar — about 14% lower than the current rate. As of April 15, the official Central Bank exchange rate stands at ₽82.77 per dollar.

Details

The ruble or rouble (; Russian: рубль, IPA: [rublʲ]) is a currency unit. Currently, currencies named ruble in circulation include the Russian ruble (RUB, ₽) in Russia and the Belarusian ruble (BYN, Rbl) in Belarus. These currencies are subdivided into one hundred kopeks. No kopek is currently formally subdivided, although denga (½ kopek) and polushka (½ denga, thus ¼ kopek) were minted until the 19th century. Additionally, the Transnistrian ruble is used in Transnistria, an unrecognized breakaway province of Moldova.