Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Rouble hits 15-month low past 87 vs dollar on political risk concerns

Published 29/06/2023, 06:44 pm
© Reuters. A view shows Russian rouble coins in this picture illustration taken October 26, 2018.  REUTERS/Maxim Shemetov
LCO
-

(Reuters) - The Russian rouble weakened past 87 against the dollar to a 15-month low on Thursday, hampered by domestic political risk concerns after an aborted mutiny over the weekend, with market uncertainty fuelling demand for safe-haven assets.

By 0823 GMT, the rouble was 0.7% weaker against the dollar at 86.96 having hit 87.47, its weakest point since March 29, 2022.

It was down 0.7% to trade at 94.94 versus the euro and shed 0.8% against the yuan to 11.98.

Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but Yevgeny Prigozhin's march on Moscow reverberated through markets and left questions about 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.

"As we expected, the rouble fell at the end of the tax period, quite sharply, by around 1.5%," said Alor Broker in a note. "We expect the national currency's weakening to continue, down to around 89-90 against the dollar."

Brent crude oil, a global benchmark for Russia's main export, was down 0.4% at $73.74 a barrel.

Russian stock indexes were higher.

The dollar-denominated RTS index was up 0.1% to 1,015.8 points. The rouble-based MOEX Russian index was 0.8% higher at 2,804.0 points.

Shares in retailer Magnit were down 0.6% after leaping to a more than seven-month high in early trade.

Magnit late on Wednesday said it would almost triple the number of blocked shares it buys back from foreign shareholders in response to strong demand from Western investors keen to exit Russian holdings.

© Reuters. A view shows Russian rouble coins in this picture illustration taken October 26, 2018.  REUTERS/Maxim Shemetov

For Russian equities guide see

For Russian treasury bonds see

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.