MOSCOW: The Russian rouble slumped to a more than six-month low past 65 per dollar on Monday, hurt by relatively low oil prices and fears that sanctions on Russian oil could crimp the country’s export revenues.
At 0729 GMT, the rouble was 1.3% weaker against the dollar at 65.45, its weakest mark since May 30.
The rouble had lost 0.9% to trade at 69.70 versus the euro, earlier hitting its weakest since May 27. It had also shed 1% against the yuan to 9.37, its weakest level since early August.
Relatively low oil prices and risks of lower export revenues in the light of the $60-a-barrel price cap on Russian oil imposed by the G7, the European Union and Australia, have put downward pressure on the rouble.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.5% at $79.5 a barrel, but this month has traded at its lowest all year.
Upcoming month-end tax payments, when exporters convert foreign currency revenues into roubles to pay local liabilities, should offer some support.
“Our view on oil, upcoming taxes and dividends allow us to maintain a forecast for a small rise in the near term (to 63-64/USD),” Dmitry Polevoy, head of investment at Locko Invest, wrote in a note to clients.
Russian rouble slides to over 6-month low vs euro
The rouble barely reacted on Friday, when Russia’s central bank held its key interest rate at 7.5% at its final meeting of the year but slightly shifted its rhetoric to acknowledge growing inflation risks, saying a recent military mobilisation was adding to labour shortages.
Russian stock indexes were falling.
The dollar-denominated RTS index was down 1.8% to 1,020.1 points, a two-month low. The rouble-based MOEX Russian index was 0.6% lower at 2,119.2 points.
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