Russian Federation has increased buying of foreign currencies this year but the reason the ruble has been beaten up lately is because of USA sanctions.
Trump accused Russian Federation and China on Monday of devaluing their currencies while the United States raises interest rates, prompting China to accuse the United States of sending confusing messages.
Mr Trump said: "Russia and China are playing the Currency Devaluation game as the US keeps raising interest rates". Treasury officials did not find China guilty of devaluing its currency, in a Friday report.
China's currency, the yuan, has climbed roughly 10 per cent against the dollar over the past 12 months, while the Russian ruble has lost 10 per cent against the greenback against the backdrop of USA and European Union economic sanctions against Moscow. "Not acceptable!" Trump said in a Twitter post on Monday. The report did not accuse either country of artificially lowering the value of its currency, Instead, it found that China's currency had recently moved in a direction that should benefit US exporters. "That's something that the Treasury Department is watching very closely and we're continuing to monitor it", she said Monday.
Hua added that China will continue with its reforms to come up with mechanisms to counter the flip-flops in foreign currency exchange rates.
The Treasury's monitoring list includes China, Japan, Korea, Germany and Switzerland.
Against the yuan, the U.S. dollar has fallen by 8.6 per cent since January 20, 2017, while it has appreciated 4.5 per cent against the rouble.
In the past three years, the Federal Reserve raised interest rate six times to a range between 1.5 percent and 1.75 percent, and says it expects to raise the rate two or three more times this year. Higher U.S. interest rates would generally increase the value of the dollar, making U.S. exports more expensive.
I don't know why he's tying USA interest rates into that but ok.
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