Russian rouble slumps to near 6-week low vs dollar

The Russian fell to a near six-week low against the dollar on Wednesday, taking stock of increasing geopolitical risks after a dam breach in Ukraine and lacking sufficient support from exporters' foreign currency conversion for dividend payments. By 1625 GMT, the rouble was 0.7% weaker against the dollar at 81.98, its weakest point since April 27.


Reuters | Moscow | Updated: 07-06-2023 22:03 IST | Created: 07-06-2023 22:02 IST
Russian rouble slumps to near 6-week low vs dollar
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  • Russian Federation

The Russian fell to a near six-week low against the dollar on Wednesday, taking stock of increasing geopolitical risks after a dam breach in Ukraine and lacking sufficient support from exporters' foreign currency conversion for dividend payments.

By 1625 GMT, the rouble was 0.7% weaker against the dollar at 81.98, its weakest point since April 27. It had lost 0.5% to trade at 87.65 versus the euro and shed 0.6% against the yuan to 11.48. Geopolitical concerns are among the factors likely to dictate fluctuations in the USD/RUB currency pair in June, Rosbank analysts said in a report. Foreign currency conversion by exporters to pay taxes and dividends will be a support factor.

"As a result, opportunities for the rouble's tactical strengthening from current levels remain," Rosbank said. Geopolitical risks have become more acute in recent weeks, with drone attacks and ground incursions on Russian territory. Russia blames Ukraine for such incidents, but Kyiv denies sending troops across the border.

Tuesday's breach of a huge dam on the front-line Dnipro river has muddied the picture for a much-awaited Ukrainian counteroffensive against Russian occupying forces and threatens an environmental disaster for civilians living in the war zone. Brent crude oil, a global benchmark for Russia's main export, was up 1% at $77.28 a barrel.

Russian stock indexes were mixed, but above the around two-week lows hit during the previous session. The dollar-denominated RTS index was down 0.2% to 1,035.9 points. The rouble-based MOEX Russian index was 0.5% higher at 2,694.7 points.

Shares in state-owned lender VTB were 1.6% higher after the bank said it expected to raise 94 billion roubles in its secondary public offering (SPO). 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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