USD/RUB is a currency pair that has become quite popular mainly among Russian forex traders. The quote of the currency pair specifies how many Russian rubles are needed to buy 1 US dollar. The US dollar is a base currency, while the Russian ruble is a quote one.

This is the most widely used currency pair for trading the Russian ruble. Nevertheless, it is considered an exotic one in the world market as the pair combines the currencies of two countries with opposite political and economic structures. Obviously, being the most stable and secure financial instrument in the world, the US dollar is the leading currency of this pair. The Russian ruble in turn is vulnerable to risks associated with exotic currencies.

Factors affecting exchange rate

Factors affecting exotic currencies differ from factors affecting major ones. The rate of a base currency depends on its country's economic health and interest rates, while the rate of an exotic currency is often determined by political events. In times of political instability, exotic currencies tend to depreciate at a rapid pace.

The USD/RUB pair is heavily influenced by changes in the exchange rates of both the US dollar and the euro. There is also a close correlation between oil and gas prices and the ruble as the latter is primarily a commodity currency.

The currency pair is not in demand in global markets due to the strict regulatory measures taken by the Bank of Russia regarding the ruble’s exchange rate. The pair is especially liquid and volatile during the European or North American trading sessions.

The USD/RUB currency pair has an inverse correlation with EUR/JPY. When EUR/JPY loses value, USD/RUB gains, and vice versa. Furthermore, an increase in the exchange rate usually leads to a decline in USD/RUB.

Advantages of USD/RUB

The main advantages of the USD/RUB pair include simplicity and convenience that allow traders to monitor the Russian ruble’s exchange rate. Like most exotic trading instruments, this currency pair is characterized by a high spread. Depending on the market situation, it may vary from 8 to 20 pips. Despite this, traders always have a chance of covering trading costs with profits gained amid high volatility.

Intraday price fluctuations make it possible to use aggressive scalping strategies. However, speculative tools are not the best choice for novice traders. The most profitable strategy when trading the ruble is to use pending orders that trigger in the event of a trend change.