Russian Rouble Hits Three-Week Low Amid Sanctions Before Marginal Recovery

The Russian rouble briefly touched a three-week low against the dollar but managed a slight recovery amid reduced foreign currency inflows and new U.S. sanctions. The rouble was impacted by shifts to the OTC market, affecting pricing transparency. The currency also saw marginal gains against the yuan and the euro.

The Russian rouble hit a three-week low against the dollar on Monday but managed to halt its downward trend. The early-month decline was driven by reduced foreign currency inflows. The currency reached 90.02 to the dollar, its lowest since new U.S. sanctions were imposed on June 14, but rebounded to 87.62 by 1507 GMT, up 0.4%.

The rouble's steady weakening since late June coincided with reduced foreign currency supply from exporters, who typically convert FX revenues into roubles to meet local liabilities towards the end of each month. Sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre (NCC), disrupted pricing as trading moved to the OTC market, complicating access to accurate prices.

Against the yuan, which had already become Moscow's most traded foreign currency before the latest sanctions, the rouble strengthened by 0.4% to 11.93. It also gained 0.5% against the euro, reaching 94.92. Meanwhile, Brent crude oil, a global benchmark for Russia's main export, decreased 0.3% to $86.28 a barrel.

(With inputs from agencies.)