As the world’s top investment manager and financial market journalist, I bring you the latest news on the Russian rouble’s performance against the dollar in light of recent geopolitical events. The rouble weakened to a 10-month low against the dollar following Ukraine’s unexpected attack on Russia’s Kursk region, but later rebounded to the day’s opening level.
By 1500 GMT, the rouble was flat at 90.99 to the dollar, after falling to 96.60, the lowest level since Oct. 20, 2023. It has lost 6.2% since the start of the attack on Aug. 6. Trading in major currencies shifted to the over-the-counter (OTC) market, obscuring pricing data, after Western sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre, were introduced on June 12.
One-day rouble-dollar futures, which trade on the Moscow Exchange and serve as guidance for the OTC market rates, were down 0.4% on Tuesday to 89.60. During the previous day’s trading, the futures lost 2.5%. The central bank’s official exchange rate, which it calculates using the OTC data, was set at 92.65 for Wednesday, a 3% jump from the rate set for Tuesday.
The weakening of the rouble against the dollar and euro has continued despite support from higher oil prices and increased net daily sales of yuan by the central bank and finance ministry. According to an analysis of the OTC market, by 1500 GMT the rouble had weakened by 1.3% to 12.07 against the dollar, which has become the most traded foreign currency in Moscow. It was down 0.2% at 99.70 against the euro, according to LSEG data.
Crude oil, a global benchmark for Russia’s main export, was down 1.0% at $81.24 a barrel as markets saw reduced risk of a wider war in the Middle East.
Now, let’s break it down. The Russian rouble’s weakening against the dollar and euro amidst geopolitical tensions and sanctions can impact various aspects of your investments. It may affect the value of your international holdings, the cost of imported goods, and the overall stability of the Russian economy. Keeping a close eye on these developments and adjusting your investment strategy accordingly can help mitigate risks and seize opportunities in this volatile market.
Remember, staying informed and making well-informed decisions is key to navigating the ever-changing landscape of global finance. As the world’s best investment manager and financial market journalist, I’ll continue to provide you with timely updates and expert analysis to help you make the most of your investments.