Ruble falls to April low against dollar

Russia’s currency is still rising this year, trading data shows

The Russian ruble fell to an almost eight-month low against the US dollar on the Moscow exchange on Thursday, wiping out the previous month’s gains amid sanctions-induced declines in exports and an aggressive recovery in imports.

The ruble fell to 72 rubles against the dollar in early trading, its lowest level against the dollar since 29 April. The ruble is also trading just below 77 against the euro, also his lowest rate since the end of April. The Russian currency fell for the ninth consecutive trading session.

However, the data show that the ruble’s dynamics continue to be positive this year. It is still trading 4% higher than in January, ahead of the start of Russian military operations in Ukraine and subsequent Western sanctions.

According to economists, the ruble’s exchange rate is affected by several factors, but the main factor is the change in the ratio of import and export flows. Other factors include the EU embargo on Russia’s oil, widening price differentials between Russia’s Ural-grade crude and global benchmark Brent, central bank’s continued soft monetary policy, BCS World Investments experts Includes Mikhail Seltzer. , told Forbes Russia.

“The rate of foreign currency appreciation is not surprising,” Seltzer said. , it happened in December,” he said.

Analysts expect the currency to weaken further in the coming months.

“As expected, the EU embargo on Russian oil, the price cap imposed by the G7, and the embargo on Russian petroleum products, which will take effect in February 2023, will lead to an even sharper cut in the surplus next year. will weaken the ruble in the coming months,” Mikhail Shulgin, head of global research at Otkriti Investments, told the press.

Experts polled by the RBK news agency predict the ruble is unlikely to return to the summer highs of 60-62 per dollar reached in the immediate future, but remains near the 70 per dollar mark. said it is likely to be

For more articles on economics and finance, click here Division of RT

(RT.com)