Analysis: Biden's prospects cast long shadow over Russian rouble

The prospect of a victory for Joe Biden in the U.S. election has weighed on the rouble for months and its fortunes now appear more closely tethered to the White House contest in two weeks' time than Russia's economic health. The rouble enjoyed a moment in the sun after Donald Trump's 2016 U.S. election victory, helped by the Republican president's congenial relations with counterpart Vladimir Putin.

Analysis: Biden's prospects cast long shadow over Russian rouble Analysis: Biden's prospects cast long shadow over Russian rouble Reuters | Oct 22, 2020 02:10AM ET View all comments (1) Analysis: Biden's prospects cast long shadow over Russian rouble By Tom Arnold and Rodrigo Campos LONDON/NEW YORK (Reuters) - The prospect of a victory for Joe Biden in the U.S. election has weighed on the rouble for months and its fortunes now appear more closely tethered to the White House contest in two weeks' time than Russia's economic health. The rouble enjoyed a moment in the sun after Donald Trump's 2016 U.S. election victory, helped by the Republican president's congenial relations with counterpart Vladimir Putin. Low debt levels as well as prudent monetary and fiscal policies have protected the currency from some of the wild swings suffered by its emerging market peers from Turkey to South Africa for much of the recent period. But as Democratic candidate Biden has pulled ahead of Trump in the polls since June, focus has turned to a new administration's likely relations with other global powers, including greater friction between Washington and Moscow. That risk, combined with angst about COVID-19's spread in Russia and lower oil prices, has contributed to the rouble tumbling around 9% against the dollar in the past three months, making it one of emerging markets' worst-performing currencies. It is now trading at around 77 against the dollar.