Monday, June 17, 2024

Russia’s ruble slumps to one-year low against US dollar

The Russian ruble has slipped to its lowest exchange rate against the US dollar since last April, data from the Moscow Exchange show.

The currency slipped to over 84 rubles against the dollar at the start of the trading session, representing the weakest rate since April 4, 2022. The ruble also fell to more than 90 against the euro for the first time since April 28, 2023, trading data revealed.

Analysts attribute the decline in the ruble against Western currencies to the imbalance caused by the insufficient inflow of foreign currency into the market.

“This is due to a reduction in export earnings following relatively low oil and gas prices,” an expert from BKS Mir Investment, Dmitry Babin, told RBK news outlet. Lower foreign currency revenue inflows from exports have caused a deficit in the state budget, exacerbated by the outflow of the currency as companies build new supply chains to buy more products from abroad.

“At the same time, import volumes have recovered to 2020-21 levels,” he added.

Analysts from Bank Saint-Petersburg also linked the weakening of the Russian currency to geopolitical factors and instability on global oil markets.

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