Rouble Tumbles: Russian Currency Faces Uncharted Waters

The Russian rouble has depreciated beyond 110 per U.S. dollar, sparking concerns over inflation and potential government intervention. Analysts predict further devaluation, fueled by foreign trade sanctions and economic instability. The weakened rouble benefits exporting companies but challenges policymakers amidst rising inflation and disrupted trade.

The Russian rouble has weakened past the 110 mark against the U.S. dollar, exceeding analysts' predictions and pushing the currency to its lowest point in over two years. This decline has prompted speculation that Russia's financial authorities may soon intervene to stabilize the rouble.

As of Wednesday afternoon, the rouble had fallen by 7% against the dollar and reached a new low against China's yuan, following a significant decline in Russia's stock market. Investors are moving their savings from stocks to deposits, which offer higher interest rates amid economic uncertainty.

Some market analysts are forecasting a further decline in the Russian currency, with the rouble possibly hitting between 115 and 120 by year-end. This depreciation is fueling inflation, complicating the central bank's efforts to manage rising prices while contending with new sanctions affecting Russia's financial sector.

(With inputs from agencies.)