Rouble slides to seven-week low vs dollar as oil price cap starts

A Group of Seven price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow's ability to finance the conflict in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production. Russian stock indexes were mixed.


Reuters | Moscow | Updated: 05-12-2022 13:10 IST | Created: 05-12-2022 13:08 IST
Rouble slides to seven-week low vs dollar as oil price cap starts
Representative Image (Photo/Reuters) Image Credit: ANI
  • Country:
  • Russian Federation

The rouble weakened to a seven-week low against the dollar as a price cap on Russian oil came into force on Monday in a development that could reduce Russia's foreign currency export revenue. At 0726 GMT the rouble was down 0.4% at 62.23 to the dollar , having earlier touched 62.49 for its weakest since Oct. 17.

Against the euro, it lost 1.1% to 65.71, its weakest in nearly five months. Against the yuan, the rouble shed 1.4% to 8.93 , having earlier touched 8.969 for its weakest since Aug. 17.

Brent crude oil, a global benchmark for Russia's main export, was up 0.4% at $86 a barrel. A Group of Seven price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow's ability to finance the conflict in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production.

Russian stock indexes were mixed. "The Russian equity market is likely to remain in a tight band in the short term on lower turnover. We see no drivers, neither to grow, nor to fall," said BCS World of Investments.

"Today, the EU ban on Russian oil and the price ceiling kick in, though there is still no clarity how this is enforced." The dollar-denominated RTS index was unchanged at 1,107.9 points. The rouble-based MOEX Russian index was up 0.4% at 2,188.6 points.

Moscow-listed shares in tech giant Yandex were up 1.5% after former finance minister Alexei Kudrin said he was joining the company as an adviser on corporate development. For Russian equities guide see

For Russian treasury bonds see

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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