Russian ruble
© Vladimir Trefilov / Sputnik
The ruble continues its seemingly unstoppable rally boosted by foreign investors seeking high yield returns. The currency has gained over 30 percent against the US dollar in just over a year.

On Thursday, the ruble rose 0.4 percent versus the greenback and was trading at 56.35 at 7:35am GMT, and gained 0.6 percent to 60.60 against the euro.

"There is a lot of currency sales from exporters, but there is practically no demand for foreign currency, neither from locals nor non-residents. It seems that only the finance ministry is still buying dollars," said Mikhail Palei, chief dealer at VTB Capital, as quoted by Reuters.

At the same time, the ruble has become one of the most attractive currencies for global investors due to the highest interest rates among emerging markets. Experts at Societe Generale SA and Schroder Investment Management say Russia may be a wise choice for those who are looking where to invest.

"The ruble may now appear more attractive by comparison. Investors are hungrier than ever for yield," said Phoenix Kalen, director of emerging market strategy at SocGen in London, as quoted by Bloomberg.

The analyst compares the Russian currency with South Africa's rand that has lost its strong lure for investors following the recent plunge caused by speculation Finance Minister Pravin Gordhan may be removed. The rand firmed 0.71 percent to 12.9600 against the dollar early on Thursday but still looks vulnerable.