Ukraine war: Russian rouble slumps against dollar

By 1519 GMT the rouble was 3% weaker against the dollar at 71.36, heading back towards the almost eight-month low of 72.6325 struck last week.

“At the end of December, the rouble is likely to remain extremely volatile as the market will need to find a new equilibrium under changed trade flows and increased sanctions pressure,” BCS World of Investments said in a note.

“This week, the rouble is expected to fluctuate in the range of 68-71 (per dollar).”

Against the euro, the rouble lost 3.4% to 76.03. Against the yuan, it was down 3.3% at 10.09.

The rouble just about remains the world’s best-performing major currency against the dollar this year, supported by capital controls and reduced imports.

Now, with exports and revenues falling, a weaker rouble is more beneficial, First Deputy Prime Minister Andrei Belousov said on Tuesday.

The strong rouble has played its role,” Belousov said. “In these conditions … it would be good to have a rouble rate of 70-80 per dollar.”

Brent crude oil, a global benchmark for Russia’s main export, was up 1% at $84.8 a barrel while Russian stock indexes were mixed.

The dollar-denominated RTS index (.IRTS) was down 2.9% at 948.8 points. The rouble-based MOEX Russian index (.IMOEX) was 0.5% higher at 2,148.8 points after earlier touching its highest in nearly two weeks.

Reuters