Russian Rouble's Slump Affects Export Potential

The Russian rouble has declined to its lowest level since March 2022 against the dollar and yuan, with the finance minister suggesting the weakness benefits exporters. Sanctions, currency shortages, and the U.S. election have influenced this downturn. Future trends predict further weakening against major currencies.

The Russian rouble has depreciated to levels not seen since March 2022, continuing its decline against major currencies like the dollar and the Chinese yuan. Russian Finance Minister Anton Siluanov highlighted the weakened currency's advantage for exporters despite the central bank's high-interest rates.

The rouble slipped to 14.5 against the yuan and 104.85 against the dollar, marking fresh lows since the onset of the Ukraine conflict. By day's end, the rouble found itself at 105.79 per dollar and 111.07 per euro. Siluanov expressed acceptance of the decline, noting its current favourability for Russia's export sector.

Amidst these fluctuations, analysts point to U.S. sanctions on Gazprombank impacting energy export payments, leading to foreign currency shortages. Additionally, the dollar's post-election strength contributed to the rouble's slide. Predictions suggest the currency might soon hit 110 against the dollar, with oil price increases offering potential relief.

(With inputs from agencies.)