Russian Rouble Stabilizes After Turbulent Fall Amid Ukraine Conflict

The Russian rouble experienced slight weakening against the dollar after a significant decline spurred by Ukraine's major attack on Russian territory. By 0730 GMT, it was 0.2% weaker, stabilizing after a period of turbulence. Trading has shifted to the OTC market due to Western sanctions.

The Russian rouble weakened slightly against the dollar on Monday, stabilising after a significant 9% fall triggered by Ukraine's largest attack on Russian territory since the war's inception. By 0730 GMT, the rouble was 0.2% weaker at 89.65 to the dollar, according to LSEG data, marking a recovery from its more than 5% weakened rate before the attack.

Zenit bank analyst Vladimir Evstifeev noted that the rouble has resumed more familiar exchange rate levels after a brief period of instability. Major currency trading has shifted to the over-the-counter (OTC) market, making pricing data less transparent following Western sanctions on the Moscow Exchange and its clearing agent introduced on June 12.

One-day rouble-dollar futures, trading on the Moscow Exchange and serving as guidance for OTC market rates, were 0.1% weaker at 88.71. The central bank's official exchange rate, calculated using OTC data, was set at 88.81. The rouble weakened by 0.7% to 12.12 against the Chinese yuan, Moscow's most-traded foreign currency, and fell 0.7% to 99.05 against the euro, according to LSEG data. Brent crude oil, a global benchmark for Russia's primary export, decreased by 0.3% to $79.47 a barrel due to concerns over weaker demand in China, the top oil importer.