MOSCOW, June 30 — The Russian rouble slumped to a more than 15-month low against the dollar and euro today, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend and lacking any support drivers.
By 1000 GMT, the rouble was 0.8 per cent weaker against the dollar at 88.25 (RM4.65) after earlier hitting 88.6775, its weakest point since March 29, 2022.
It lost 0.7 per cent to trade at 95.78 versus the euro after also hitting a 15-month low of 96.3225. It shed 0.6 per cent against the yuan to 12.13, earlier clipping a more than 14-month low.
“The rouble continues to crumble,” Alor Broker said in a note. “It lost another 1.4 per cent in value yesterday, despite stabilising oil.
“The target for the dollar-rouble pair of 90 is approaching and is likely to be reached.”
Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin’s aborted weekend march toward Moscow reverberated through markets and left questions over President Vladimir Putin’s grip on power.
The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed.
The Bank of Russia’s Deputy Governor Alexei Zabotkin said reduced export revenues and the balance of payments were determining the rouble’s weakening, which he said carried no risks to financial stability.
“But, certainly, the exchange rate dynamics will be taken into account at the next board meeting on the key rate in terms of clarifying the impact ... on inflation dynamics this year,” the Interfax news agency quoted Zabotkin as saying today.
Brent crude oil, a global benchmark for Russia’s main export, was up 0.6 per cent at US$74.75 a barrel.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 1.3 per cent to 994.0 points. The rouble-based MOEX Russian index was 0.4 per cent lower at 2,784.6 points.
Shares in Gazprom dropped about 0.7 per cent after the energy group’s shareholders approved the board’s recommendation against paying full-year 2022 dividends after allocating a half-year dividend of 1.2 trillion roubles (RM63 billion). — Reuters
