Ruble trading near 8 month lows expecting new sanctions
2022.12.29 07:14
Ruble trading near 8 month lows expecting new sanctions
Budrigannews.com – After falling to an eight-month low against the dollar in early trade, the Russian rouble recovered to gain on Thursday. It was struggling under the weight of expectations that sanctions on Russian oil and gas may limit export revenues.
The rouble has lost more than 13% against the dollar since Dec. 5, when a Western price cap on Russian oil exports came into effect, despite recovering ground in another volatile session.
The rouble had previously touched 72.9175, its lowest level since April 27, and was 0.8% stronger against the dollar at 71.64 by 0957 GMT.
It rose 0.6 percent to 75.95 against the euro and 10.31 against the yuan, touching a seven-month low of 10.326 earlier.
The month-end tax period, during which exporters typically convert foreign currency revenues into roubles to pay domestic debts, has lost its primary support for the rouble. Additionally, rising imports and falling exports have added additional pressure.
According to a note from Alfa Capital, “the fundamental factor in the form of the change in the form of the change in current account parameters, where exports have decreased and imports have increased, is putting noticeably pressure on the rouble’s position.”
at $81.6 a barrel, a global benchmark for Russia’s primary export, was down 2%.
Russia’s long-awaited response to the price cap was signed this week by President Vladimir Putin, who signed a decree prohibiting the supply of oil products and oil from February 1 to countries that abide by it for five months.
More Italy approves budget for 2023
In 2023, the economy of Russia is also on shaky ground. On Wednesday, economic data showed that a labor shortage caused by Putin’s partial mobilization order in late September was hurting growth prospects.
The stock indexes of Russia were higher.
The RTS index in dollars rose 1% to 942.7 points. With 2,144.5 points, the MOEX Russian index based on the rouble gained 0.2 percent.
