The Russian rouble recently dropped to its lowest point since March 2022. Against the U.S. dollar, it fell to 104.85 and hit 14.5 against China’s yuan. By the end of the trading session, the rouble also crossed the 110 mark against the euro. These numbers highlight a significant slide for the currency.
Finance Minister Anton Siluanov shared insights into the currency’s performance. He stated that the weaker rouble benefits exporters despite its challenges. Exporting companies gain an edge, even with high central bank interest rates. According to Siluanov, the exchange rate is crucial for supporting exports.
This official stance signals that the government does not oppose the currency's depreciation. Analysts suggest this strategy might help offset other economic hurdles caused by sanctions.
Several reasons contribute to the rouble's slide. Recent U.S. sanctions against Gazprombank disrupted payments for energy exports. This disruption reduced foreign currency availability in Russia's domestic market. Furthermore, high international transaction costs added to the rouble’s decline.
The dollar’s rally after the U.S. election also pressured the rouble. Analysts predict the rouble might drop further, potentially hitting 110 to the dollar by year-end.
Exporters’ tax-related foreign currency sales might offer short-term stability. Brent crude oil, a major export, also saw a 0.7% price increase to $73.52. This rise could indirectly support the rouble’s value.
Traders should monitor these developments closely. A weak rouble affects global markets and trading opportunities. It’s essential to stay informed about these shifts and adapt strategies accordingly.
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