Rouble tumbles to near eight-month low vs dollar

Rouble tumbles to near eight-month low vs dollar
Rouble tumbles to near eight-month low vs dollar
© Reuters. FILE PHOTO: Woman holds Russian Rouble banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration

MOSCOW (Reuters) -The rouble slumped to its weakest since late April past 72 against the dollar on Thursday as fears over the impact of sanctions on Russian oil and gas took the currency’s losses this month to more than 15%.

By 0740 GMT, the rouble was down 1.8% against the dollar at 72.25 , earlier hitting 72.3075, its weakest mark since April 29.

It also lost 1.6% to trade at 76.82 versus the euro, also a near eight-month low, and shed 2% against the yuan to a near seven-month low of 10.28.

The rouble is continuing its “unrestrained fall”, said Veles Capital analysts. Should the rouble consolidate above the psychologically important levels of 70 per dollar, 75 to the euro and 10 per yuan, it could open up new downside horizons for the Russian currency, they said.

Falling export revenues in recent months have been exacerbated by a European Union oil embargo that began in December, when an oil price cap come into force as well.

, a global benchmark for Russia’s main export, was up 0.3% at $82.4 a barrel. [O/R]

Analysts expect the rouble to gain some kind of foothold next week when month-end taxes, which usually see Russian exporters convert FX revenues to pay local liabilities, are due.

Russia has been borrowing heavily in the final quarter of the year, on Wednesday selling 337.8 billion roubles ($4.7 billion) of OFZ treasury bonds.

Russian banks have been buying the vast majority of government debt, with sanctions preventing access for foreign investors, who had traditionally been attracted by Russia’s high yields.

Dominant lender Sberbank plans to build up its liquidity buffer using bonds with floating-rate coupons, Anatoly Popov, deputy chairman of Sberbank’s executive board, told the RIA news agency. The bank holds more than 3 trillion roubles in OFZ bonds.

Russian stock indexes were mixed.

The dollar-denominated RTS index was down 1.8% at 923.7 points, its lowest mark since Oct. 10. The rouble-based MOEX Russian index was 0.1% higher at 2,118.1 points.

For Russian equities guide see

For Russian treasury bonds see

($1 = 72.0000 roubles)

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance