Russian Rouble Weakens as Demand for Foreign Currency Rises
Russian Rouble Dives Towards 18-Month Low
The Russian rouble is experiencing a downward trend, with its value against the dollar approaching an 18-month low. This dip is primarily due to domestic demand for foreign currency and a decline in oil prices.
Rouble’s Current Performance
At 0743 GMT, the rouble weakened by 1.2% against the dollar, reaching a value of 100.48. Yesterday, it hit its lowest point since March 2022, at 102.3450. Additionally, the rouble lost 1.3% against the euro, trading at 106.12, and dropped 1.2% against the yuan, reaching 13.74.
Analysts’ Predictions
Promsvyazbank analysts speculate that if significant volumes of foreign exchange are sold in the second half of trading, the rouble may strengthen towards the end of the day.
Rouble’s Previous Weakening
In August, the rouble’s decline led to the Bank of Russia implementing an emergency 350 basis-point rate hike to 12% and discussions about reintroducing controls to stabilize the currency. However, this time, interventions have been limited.
Oil Prices and Stock Indexes
The decline in oil prices, with a 0.3% drop to $87.86 a barrel, has contributed to the weakening of the rouble. As a result, Russian stock indexes, including the dollar-denominated RTS index and the rouble-based MOEX Russian index, have also experienced a downward trend.
Resource Guides
For more information on Russian equities, refer to our Russian Equities Guide. Additionally, our Russian Treasury Bonds Guide provides insights into Russian treasury bonds.
