Russian Rouble Declines Amid Escalating Ukraine Conflict

The Russian rouble weakened further against the dollar as Russia evacuated parts of a region adjoining Ukraine. The rouble has lost 6% of its value since Kyiv's incursion. OTC trading has obscured pricing data, and support from higher oil prices and increased yuan sales hasn't prevented the currency's decline.

The Russian rouble continued its slide against the dollar on Monday as Russia evacuated parts of a second region adjoining Ukraine. This comes six days after Kyiv launched its largest incursion into Russian territory since the 2022 war started.

By 0900 GMT, the rouble had weakened by 1.9% against the dollar, standing at 90.30 according to LSEG data. The currency has seen a consistent decline over five sessions, losing 6% of its value amid increased hostilities. Trading in major currencies moved to the over-the-counter (OTC) market after Western sanctions targeted the Moscow Exchange and its clearing agency, the National Clearing Centre, on July 12.

One-day rouble-dollar futures, which offer guidance for OTC market rates, were down 0.3% at 87.38. The central bank's official exchange rate, calculated using OTC data, was set at 87.99—approximately 4% weaker since Ukraine's military action began. Despite support from higher oil prices and increased yuan sales, the rouble continued to decline against both the dollar and euro.