Russian Rouble's Six-Day Slide Amid Ukraine Crisis

The Russian rouble has weakened for six consecutive trading sessions following Ukraine's recent attack on Russia's Kursk region. The rouble has lost 8.5% since August 6, despite higher oil prices and increased yuan sales by the central bank. The currency now stands at 92.50 to the dollar.

The Russian rouble continued its downward trend on Tuesday, marking the sixth consecutive trading day of losses in the aftermath of Ukraine's surprising attack on Russia's Kursk region last week.

By 0800 GMT, the rouble had dropped by 1.6% to reach 92.50 to the dollar, based on LSEG data. Since the attack commenced on August 6, the rouble has declined by 8.5%, with major currency trading shifting to the over-the-counter (OTC) market due to Western sanctions imposed on the Moscow Exchange and its clearing agent, the National Clearing Centre, on June 12.

One-day rouble-dollar futures, which serve as an indicator for OTC market rates and are traded on the Moscow Exchange, fell by 0.4% on Tuesday to 89.60, following a 2.5% drop in the previous day's trading. The central bank set the official exchange rate at 89.93 on Monday, reflecting a 6% decline since the attack's onset.

The downtrend of the rouble against both the dollar and the euro continues, despite boosted oil prices and increased net daily sales of yuan by the central bank and the finance ministry. The rouble also fell by 0.6% to 12.00 against the Chinese yuan, the most traded foreign currency in Moscow, hitting this level for the first time since July 22.

Against the euro, the rouble was down by 2.4% to 101.90, breaching the key threshold of 100 roubles to the European currency, as per LSEG data. The central bank's official exchange rate was 96.69 roubles to the euro. Additionally, Brent crude oil, a crucial indicator for Russia's main export, fell by 0.2% to $81.88 a barrel, driven by concerns over demand after OPEC revised its demand growth forecast for 2024.

(With inputs from agencies.)