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Rouble up before Putin-Biden meet in political risk-filled week
The Russian rouble has rebounded after four days of losses, driven by higher oil prices and hopes for improved relations between Russia and the United States. The meeting between U.S. President Joe Biden and Russian President Vladimir Putin is set to begin at 1100 GMT in Geneva, with discussions expected to cover arms control, cyber-hacking, and election interference. The meeting follows Biden's unsuccessful talks with Turkish President Tayyip Erdogan earlier in the week, with analysts suggesting that the risk premium on Russian assets is linked to U.S. sanctions and the potential for more. Geopolitical tensions have also impacted emerging markets more broadly, with MSCI's emerging equity index on track for its worst session in a month. The meeting between the U.S. Federal Reserve and Chair Jerome Powell is also expected to influence emerging market currencies, with potential signals of exiting crisis-era policies and increased volatility in Latin American countries.
