Russian Rouble Weakens After Trump-Putin Call 

A woman walks outside the Kremlin on a sunny day in Moscow, Russia, 18 March 2025. (EPA)
A woman walks outside the Kremlin on a sunny day in Moscow, Russia, 18 March 2025. (EPA)
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Russian Rouble Weakens After Trump-Putin Call 

A woman walks outside the Kremlin on a sunny day in Moscow, Russia, 18 March 2025. (EPA)
A woman walks outside the Kremlin on a sunny day in Moscow, Russia, 18 March 2025. (EPA)

The Russian rouble interrupted its rally and weakened against both the US dollar and China's yuan on Wednesday following a conversation between US President Donald Trump and Russian President Vladimir Putin that focused on the war in Ukraine.

In the telephone call, Putin agreed to stop attacking Ukrainian energy facilities temporarily but declined to endorse a full 30-day ceasefire that Trump had hoped would be the first step toward a permanent peace deal.

By 0840 GMT, the rouble was down 1.3% at 82.80 against the dollar in the over-the-counter market. Against the Chinese yuan, the rouble was down 1.2% at 11.36 in trade on the Moscow Stock Exchange (MOEX).

The Russian currency hit its strongest levels against both the dollar and the yuan since June 2024 this week. It is up 27% against the dollar so far this year on expectations of easing tensions between Russia and the United States.

Russia's Deputy Prime Minister Alexander Novak said on Tuesday that a return of foreign investors to the Russian market and resulting capital inflows played a role in the rouble rally.

"We are also observing an inflow of foreign capital into the domestic market, taking into account the geopolitical situation," Novak was quoted in the Russian media as saying.

The stronger rouble is helping the central bank fight inflation, its main headache. However, it is also dealing a blow to exporting companies as well as state budget revenues, which depend heavily on oil and gas exports that are traded in dollars.

Denis Popov from PSB bank noted that Novak's statement was the first official confirmation of capital inflows taking place as international investors begin to eye Russian assets again, creating the potential for further strengthening of the rouble.

"Considering that the end of March should see an increase in currency sales by exporters, the risks of further strengthening of the rouble are very high," Popov said.



US Economy Shrinks 0.3% in 1st Quarter as Trump Says 'Be Patient'

President Donald Trump speaks during a cabinet meeting at the White House, Wednesday, April 30, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Wednesday, April 30, 2025, in Washington. (AP Photo/Evan Vucci)
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US Economy Shrinks 0.3% in 1st Quarter as Trump Says 'Be Patient'

President Donald Trump speaks during a cabinet meeting at the White House, Wednesday, April 30, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Wednesday, April 30, 2025, in Washington. (AP Photo/Evan Vucci)

US President Donald Trump said on Wednesday that Americans should be patient in the face of a first quarter economic contraction, arguing that his tariffs would eventually lead to a boom in the US economy.

The economy shrank 0.3% from January through March, first drop in three years. It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before Trump imposed massive tariffs.
The January-March expansion was the slowest in almost three years and was down from 2.4% in the last three months of 2024. Imports shaved 5 percentage points off first-quarter growth. Consumer spending also slowed sharply.
Trump inherited a solid economy that had grown steadily despite high interest rates imposed by the Federal Reserve to fight inflation. His trade policies — including 145% tariffs on China — have paralyzed businesses and threatened to raise prices and hurt consumers.

Republican Trump blamed his Democratic predecessor, Joe Biden, for the poor showing.

"This is Biden’s Stock Market, not Trump’s," he said. "Our Country will boom, but we have to get rid of the Biden 'Overhang.'

Trump added: "This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!"