Rouble's Tumbling Fortunes Amid Rising Tensions

The Russian rouble weakened against the dollar following President Putin's announcement of a missile strike in Ukraine. The currency has suffered a 20% drop since escalated conflict in August. Western sanctions have halted dollar and euro trades, creating volatility in the rouble's exchange rate.

The Russian rouble continued its slide against the U.S. dollar on Friday, following President Vladimir Putin's announcement of a new missile strike on a Ukrainian facility. As of 0730 GMT, the rouble fell 0.7% to 102.00 per dollar, while remaining stable at 106.15 to the euro, according to LSEG data.

This marks the rouble's first break through the 100 mark against the dollar since last month, fueled by concerns of escalating tensions between Russia and the West. Since the beginning of Ukraine's incursion into the Kursk region on August 6, the rouble has depreciated by approximately 20% against the dollar.

Western sanctions imposed on June 12 halted dollar and euro trades at the Moscow Exchange, leading to increased opacity and volatility in the exchange rate. Meanwhile, Brent crude oil prices rose, benefiting from the intensified Ukraine conflict. This highlights the challenges facing Russia's economy as geopolitical tensions simmer.

(With inputs from agencies.)