In a remarkable reversal of fortunes, the Russian ruble has surged to its strongest level against the US dollar in two years, fueled by growing geopolitical optimism, reduced tensions, and renewed hopes for a negotiated peace in the long-standing Ukraine conflict. The currencys rally marks one of the most notable performances among emerging markets this year and signals a potential turning point in Russias economic and diplomatic fortunes.

On May 22, the ruble reached 78.9 per US dollar, a milestone not seen since mid-May 2023. Since early March, the currency has appreciated by approximately 11%, positioning it as the top performer among emerging market currencies in 2025, according to Alfa-Capital equity analyst Alina Poptsova.

Multipl...