Russian Rouble Faces Minor Decline Amidst Sanctions and Low Trading Volumes

The Russian rouble weakened slightly against the dollar on Friday, trading with low volumes. Sanctions on Moscow Exchange and National Clearing Centre led to varied prices and complicated access to reliable rouble pricing. Russia's foreign trade surplus increased, while Brent crude oil saw a minor rise.

The Russian rouble experienced a minor decline against the dollar on Friday amid low trading volumes. As of 0730 GMT, the rouble fell by 0.3%, standing at 87.25 per dollar.

Sanctions on Moscow Exchange and its clearing agent, the National Clearing Centre, caused varied prices and spreads, shifting trading to the over-the-counter market since June 14. This has complicated access to reliable pricing for the Russian currency. The central bank's data, published Thursday, revealed a 19% year-on-year rise in Russia's foreign trade surplus, reaching $67.8 billion in the first half of 2024. The regulator pointed to a more substantial decline in imports compared to exports.

Mid-June saw the rouble climb to one-year highs, with the central bank highlighting foreign trade operations as a crucial factor for the rouble exchange rate. The currency remains supported by capital controls and state foreign currency sales.

Against the yuan, which has become the foremost traded foreign currency in Moscow even before the latest sanctions, the rouble slipped by 0.1% to 11.97. It also decreased by 0.7% to 95.18 against the euro.

Meanwhile, Brent crude oil, a global benchmark for Russia's primary export, saw a 0.5% increase to $85.91 a barrel. This rise comes amid signs of easing inflationary pressures in the United States, the world's largest oil consumer.