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Russia’s ruble has soared to the top of global currency rankings this year, delivering the strongest gains against the dollar and outperforming even gold, which has long been considered the haven.
Data compiled by Bloomberg indicates the ruble is now the best-performing major currency in 2025, while the dollar has faltered under pressure from US President Donald Trump’s tariff escalations.
Russia’s gains are rooted in domestic monetary policy despite the ongoing sanctions imposed by the US and its allies following the Ukraine war that erupted in February 2022. While the stronger currency may appeal to those focused on curbing inflation, it could reduce energy earnings at a time when the government is heavily investing in defense and social spending.
The Bank of Russia’s ultra-hawkish 21% key interest rate has limited import demand and foreign currency outflows, while exporters are required to convert a portion of earnings into rubles — further boosting the local currency.
Despite ongoing Western sanctions, international investors especially from countries maintaining ties with Russia, are reportedly pursuing ruble-denominated assets through the classic carry trade. Many Russian firms are also refinancing expensive ruble debt with cheaper yuan loans, increasing conversions into rubles.
Amid mounting uncertainty, traders turned to gold, driving the metal up 23% since the beginning of the year to record highs, making it the second-best performer against the dollar after the ruble. Analysts say Trump’s erratic tariff decisions have shaken confidence in traditional US safe havens like the dollar and Treasuries, contributing to the ruble’s and gold’s ascent.
The dollar sank to a new six-month low on Monday as shifting tariff policies under the Trump administration fueled investor anxiety and eroded trust in the dollar and US Treasuries as safe-haven assets.
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