The ruble experienced a significant dip, reaching a one-week nadir beyond 93 against the dollar as markets reopened following a tragic incident near Moscow, despite support from strong oil prices and impending tax payments.

In a solemn response to the violence that unfolded on Friday night—marking the gravest assault on Russian soil in two decades—Russia observed a day of mourning and proceeded to charge four individuals linked to the attack at an outdoor concert.

By the early hours of the morning, the ruble’s value stabilized at 92.81 against the dollar, following a brief descent. The currency saw a modest decline of 0.1% against the euro, standing at 100.36, and a 0.3% decrease when paired with the yuan, reaching 12.78.

Market sentiments were also influenced by the Bank of Russia’s decision to maintain the interest rate at 16%, a move accompanied by a statement highlighting persistent inflationary pressures and the necessity of stringent monetary policies to achieve the bank’s 4% inflation target.

Brent crude, a pivotal benchmark for Russia’s principal export, saw a 0.4% increase to $85.76 a barrel, indicating a potential cushion for the ruble amid market volatility.

Additionally, the ruble is expected to find support this week from the customary month-end tax period, prompting exporters to convert their foreign earnings to meet domestic obligations.

However, Russian equities felt the pressure, with both the dollar-denominated RTS index and the ruble-based MOEX Russian index recording declines.

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