Rouble sinks to over 15-month low vs dollar on political risk concerns
2023.06.30 03:47
© Reuters. A view shows Russian rouble coins in this picture illustration taken October 26, 2018. Picture taken October 26, 2018. REUTERS/Maxim Shemetov
(Reuters) – The slumped to a more than 15-month low against the dollar on Friday, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend and lacking support drivers.
At 0644 GMT, the rouble was 0.5% weaker against the dollar at 88.00 after earlier hitting 88.6775, its weakest point since March 29, 2022.
It lost 0.7% to trade at 95.74 versus the euro and shed 0.5% against the yuan to 12.12.
“The rouble continues to crumble,” Alor Broker said in a note on Friday. “It lost another 1.4% in value yesterday, despite stabilising oil.
“The target for the dollar-rouble pair of 90 is approaching and is likely to be reached.”
Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin’s aborted weekend march toward Moscow reverberated through markets and left questions over President Vladimir Putin’s grip on power.
The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed.
, a global benchmark for Russia’s main export, was unchanged at $74.34 a barrel.
