The rouble gained against the dollar on Friday, supported by a sharp jump in prices for oil, Russia’s main export, after Israel launched major strikes against Iran.
Israel said it had attacked nuclear facilities and missile factories and killed a swathe of military commanders in what could be a prolonged operation to prevent Tehran building an atomic weapon.
The attacks sparked Iranian retaliation and raised concerns about possible disruption to oil supplies.
Brent crude was up 7.9% at $74.83 a barrel by 1124 GMT. The rouble was 0.6% higher at 79.50 per U.S. dollar, according to LSEG data based on over-the-counter quotes.
Trading was light, as Russia was marking a two-day national holiday.
The rouble appreciated more sharply earlier in the session, but as oil prices pared some of their early gains, so too did the Russian currency.
The rouble has strengthened by over 40% against the dollar this year, a rise analysts have attributed to the easing of geopolitical tensions – mainly with U.S. President Donald Trump’s administration – and the central bank’s tight monetary policy, which has reduced demand for foreign currency.
Against the Chinese yuan, the most traded foreign currency in Russia, the rouble strengthened by 0.3% to 10.92 on the Moscow Stock Exchange. The central bank uses yuan for foreign exchange interventions.
American Dollar Exchange Rate