Ruble rises after Putin orders troop withdrawal from Syria

Russia's currency rose more than one percent against the dollar shortly after the country's president announced moves to find a peaceful solution to the situation in Syria.

The Russian ruble hit a record low earlier this year. Photo illustration: Dailysabah

At 19:00 GMT, equivalent to 2:00 this morning Vietnam time, the ruble increased by 0.07%, at 69.83 against the USD, up 0.6% to 77.50 against the euro, Reuters said.

President Vladimir Putin has ordered Russia's defense minister to begin withdrawing most of its troops from Syria from today.Mr Putin expressed hope that the decision would encourage all parties involved in the Syrian conflict to pursue a peaceful solution.

Russia's decision to withdraw troops was announced on the day UN-brokered talks between Syria's warring sides resumed in Geneva, Switzerland.

However, Moscow will still maintain a military presence in Syria, and the deadline for a complete withdrawal has not been announced. Mr. Putin also pointed out that Russian forces will continue to be stationed at the port of Tartus and the Hmeymim air base in Latakia.This military group, which has been present in Syria for many years, will now have to take on the very important function of monitoring the ceasefire and facilitating the peace process.

Overall for the week, the Russian currency gained 3% against the USD as Brent crude oil prices rose more than 4%.The market is expected to focus on the Russian central bank's monetary policy meeting on March 18.While the majority of economists participating in the surveyReuterssaid earlier this month that they expected the bank to leave interest rates unchanged, with slowing inflation and a stronger ruble leading some to believe a rate cut was on the cards.

Moscow began its air campaign in Syria on September 30 last year, following an official request from Syrian President Assad. Observers sayQuestions remain about the practical impact of Mr Putin’s announcement. It is unclear whether Russia will halt its airstrikes in Syria. Russia still has the ability to launch strikes from its base in Latakia.

According to VNE