In December and January, the ruble saw a 9% increase against the US dollar, despite the dollar's strengthening in the global market. This appreciation occurred as the Russian economy adjusted to a new structure of foreign trade settlements following sanctions imposed on Russian banks in November.
Towards the end of 2024, there was a shift in the stock market trend. The decline of the MOEX Russia Index observed in the second half of 2024 halted. By the end of December and January, it had risen by 14.4%. Stock market volatility decreased, with the RVI dropping from 55.6 points at the start of December to 34.3 points by the end of January. OFZ yields began to fall after the Bank of Russia decided to maintain its key rate at 21% in December.
Last year, gold prices increased by nearly 45% in ruble terms, making gold the highest-returning instrument among Russian market options. Amid high interest rates, returns on money market funds and deposits—both ruble- and foreign currency-denominated—exceeded inflation.
In January, shares of construction companies yielded the highest return as they recovered from last year's losses. Returns on gold and ruble deposits remained above inflation, while US dollar- and euro-denominated deposits experienced negative returns due to a stronger ruble.
Further information can be found in the latest issue of the Financial Market Risks Review.