Russian Rubble Falls Against USD Amid Oil Export Issues

In response to new pressure from the West’s price ceiling on Russia’s oil exports, the Russian ruble (RUB) recovered some of its losses after Thursday’s plunge to its lowest level against the US dollar (USD) in more than five months.

Russian Ruble Falls Across Board

In early morning trading in Moscow today, the ruble dropped to 64.95 against the dollar, its lowest level since July 6, before recovering. The ruble was down 1.15% for the day at 64.00 as of the late North American session.

Meanwhile, the ruble experienced an 11-week low against the euro (EUR) before rebounding to rise 0.1% to 68.25, while it was unchanged at 9.17 against the Chinese yuan (CNY).

Strict capital controls have assisted the ruble’s rapid recovery over the summer after it fell to historic lows when Moscow launched tens of thousands of troops into Ukraine on February 24 and the West imposed broad sanctions on Russia.

The Russian ruble has been under pressure recently due to worries about a worldwide recession, the European Union’s ban on Russian oil exports, and a Western price restriction.

The ruble’s weakening comes despite benchmark crude oil prices rising above $80 per barrel after falling to their lowest level of the year last week. Analysts said that the decline in Russian exporters’ foreign currency revenues—who are obligated to convert at least half of their foreign earnings into rubles—was putting pressure on the currency.

Finally, Thursday saw a decline in Russian stock indexes. The MOEX Russian index, which is valued in rubles, was down 1% at 2,137.3 points, while the dollar-denominated RTS index was down 1% at 1,049.7 points.

The next central bank meeting tomorrow was also a topic of discussion. The regulator’s final rate-setting decision of the year is anticipated to keep interest rates at 7.5%.