Russian Rouble Hits 10-Month Low Amid Geopolitical Tensions

The Russian rouble weakened to a 10-month low against the dollar following Ukraine's unexpected attack on Russia's Kursk region. Despite rebounding, the rouble has lost 6.2% since the attack began. Trading data has become obscure after Western sanctions. The rouble weakened against major foreign currencies including the Chinese yuan and the euro.

The Russian rouble hit a 10-month low against the US dollar during Tuesday trading, following an unexpected Ukrainian attack on Russia's Kursk region. By 1500 GMT, the rouble had rebounded to its opening level at 90.99 to the dollar, down from a fall to 96.60, its weakest level since October 2023.

Since the Ukrainian assault began on August 6, the rouble has lost 6.2%. Major currencies trading shifted to the over-the-counter (OTC) market, obscuring pricing data, due to Western sanctions imposed on the Moscow Exchange and its clearing agent, the National Clearing Centre, as of June 12.

One-day rouble-dollar futures, traded on the Moscow Exchange and used as a guide for OTC market rates, fell 0.4% to 89.60 on Tuesday, following a 2.5% drop the previous day. Despite higher oil prices and increased yuan sales by the central bank and finance ministry, the rouble weakened further, marking its worst performance against currencies such as the Chinese yuan and the euro.

(With inputs from agencies.)