Russian Rouble Touches The mark Of 66, Highest Since March 2020

Russian rouble touches the mark of 66, highest since March 2020

Russian Rouble Touches The mark Of 66, Highest Since March 2020

On Thursday, the Russian rouble rose to its highest level against the US dollar since March 2020, aided by capital controls, while equity markets rose as investors awaited news on possibly additional penalties against Moscow.

Early trading on the Moscow Exchange saw the volatile currency touch a high of 65.31 per dollar, but it later fell to 66.60, 0.4 percent lower than its Wednesday closing level.

Since the start of the COVID-19 epidemic, the morning peak value had not been seen.

The rouble has risen in recent weeks as a result of export-oriented enterprises being required to convert foreign money. In addition, due to dwindling imports and limitations on cross-border transactions, demand for dollars and euros has been sluggish.

The rouble’s movements are more pronounced than usual because market liquidity has been drained by central bank restrictions aimed at preserving financial stability following Russia’s deployment of tens of thousands of soldiers and equipment into Ukraine.

The rouble was 0.3 percent firmer against the euro at 70.20, lingering around levels were at in February 2020. If no additional penalties are announced, the Russian stock market may try to recover its losses from yesterday.

New penalties on Russia, including an oil crisis, were on the table as the West sought to further isolate Moscow.

The rouble remained unaffected by the Federal Reserve’s decision to boost its benchmark overnight rate of interest.

Sanctions and investment restrictions affected the direct influence of US monetary policy on the Russian market.

On Thursday, oil prices rose on supply fears after the European Union announced further sanctions against Russia, including a six-month crude embargo, countering concerns about reduced Chinese demand.

The price of Brent crude was up 0.3 percent. Because the oil market hasn’t fully factored in the possibility of an EU oil embargo, higher crude prices are likely in the summer months if it passes.

Oil markets will face a tremendous logistical difficulty as a result of the planned EU oil embargo. In the face of sanctions, reconfiguring Russian production from Europe to eager purchasers in Asia.

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