The Russian ruble has become one of the most profitable currencies for investors around the world; Bloomberg reported citing opinions provided by numerous strategists and traders.
Namely, it became the most lucrative currency for carry-traders, those who borrow cash in countries with low-interest rates and then convert it to the currency of another country with higher interest rates or more profitable investment prospects. Bloomberg research shows that ruble brought up to 72.9% returns to those who invested in it since the end of 2014, twice as much as the second-best currency for carry-trade, the Egyptian pound.
The ruble has also become a "refuge" for those fleeing the uncertainties of the US-China trade war. The news agency indicated that the Russian currency owes its current status not only to relatively high interest rates but also to its strength ensured by the government's policy of accumulating "windfall oil revenues" as national reserves and its GDP growth rates, which reached a new maximum since 2010.
These changes came after the ruble suffered a significant shock and fell in value in 2014 on the back of oil price declines and the introduction of foreign sanctions against Moscow. Since then, the currency has gradually been regaining ground, becoming stronger and gaining 7.32% in value compared to the dollar in spot prices and nearly 10% in futures contracts in 2019 alone.
Analysts at HSBC Holdings Plc, cited by Bloomberg, believe that the ruble growth trend will continue in 2020 and will gain 7% against current levels, although it won't go as high as in 2019.