The rouble fell to a near 16-month low against the euro on Wednesday and weakened against the dollar and yuan, with the Russian currency under lingering geopolitical pressure and unable to take advantage of domestic drivers.
The Russian currency has been gradually weakening all year as exports fall and imports recover, but pressure intensified sharply after an abortive armed mutiny by the Wagner mercenary group in late June.
At 0757 GMT, the rouble had lost 0.7% to trade at 102.68 versus the euro, its weakest point since March 28, 2022. It was 0.5% weaker against the dollar at 91.37 and had shed 0.3% against the yuan to 12.67.
Easing domestic demand for foreign currency, upcoming month-end tax payments by exporters and the prospect of a central bank rate hike this week should all lend the rouble some support.
Bank St Petersburg analysts said the rouble could firm towards 90 against the dollar by the end of the week.
Analysts polled by Reuters expect the Bank of Russia to raise rates by 50 basis points to 8% on Friday, with the rouble’s sharp slide in recent weeks adding to already intensifying inflation pressure from labour shortages and strong consumer demand.
Russian rouble hits near 16-month low vs euro, recovers vs dollar
Brent crude oil, a global benchmark for Russia’s main export, was unchanged at $79.61 a barrel. Russian stock indexes were mixed.
The dollar-denominated RTS index was down 0.6% to 1,018.6 points.
The rouble-based MOEX Russian index was steady at 2,955.5 points.
Comments
Comments are closed.