Russian ruble continued to fall
2022.12.28 03:11
Russian ruble continued to fall
Budrigannews.com – On Wednesday, sanctions on Russian oil and their potential impact on export revenues put pressure on the Russian currency, and the rouble fell below the 71 mark against the dollar.
After an oil embargo and price cap went into effect, the rouble lost about 8% against the dollar last week and is on track for a significant monthly decline. The recent slump, according to the finance ministry, is connected to rising imports.
The rouble was 1.1% lower against the dollar at 71.19 GMT, moving toward the nearly eight-month low of 72.6325 set last week.
It fell 0.5 percent to 75.37 against the euro and 1.4 percent to 10.12 against the yuan.
Even though the rouble was trading in a narrower band early on Wednesday, it has been highly volatile over the past two weeks and is susceptible to sharp swings amid lower trading volumes leading up to the New Year’s holidays in Russia.
Olga Yangol, head of emerging markets research and strategy for the Americas at Credit Agricole (OTC:), stated, “The newly imposed Western sanctions have contributed to the recent falls in energy prices, which is certainly putting pressure on the rouble.” CIB.
Yangol added that the rouble will remain relatively stable in the future, anticipating that the oil price will be primarily driven by geopolitics and that OPEC+ will continue to reduce production in response to market fundamentals.
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At $83.7 a barrel, a global benchmark for Russia’s primary export, was down 0.7 percent.
Russia’s long-awaited response to the Western price cap was signed by President Vladimir Putin on Tuesday. The decree prohibits the supply of oil products to countries that adhere to the cap for five months beginning on February 1.
The stock indexes in Russia were mixed.
The RTS index in dollars rose 0.8% to 952.9 points. At 2,152.0 points, the MOEX Russian index based on the rouble remained the same.
