Russian Rouble Amidst Geopolitical Titans: A Deepening Crisis

The Russian rouble remains volatile amid geopolitical tensions involving Russia. Western sanctions and the Ukraine conflict have exacerbated the rouble's weakness, pushing it above the 100 mark against the dollar. With further tension predicted, experts foresee persistent instability for the Russian currency in global markets.

The Russian rouble hovered above the critical 100 mark against the U.S. dollar on Wednesday, as geopolitical tensions with the West continued to fuel economic uncertainty. By 0730 GMT, the rouble was at 100.25 to the dollar, a slight improvement from the previous session's 100.57.

The currency also experienced fluctuations against other currencies, standing at 105.62 to the euro, compared to Friday's close of 106.57, and fell by 0.2% against the yuan to 13.85 on the Moscow stock exchange. BCS analysts warned of potential further weakening due to escalating geopolitical tensions.

Since the Ukraine incursion into Russia's Kursk region on August 6, the rouble has depreciated by nearly 19% against the dollar, undermined by escalating tensions with the U.S. and successive Western sanctions. The official exchange rate surpassed the 100 mark to the dollar on Tuesday, marking a historic low since October 2023.

(With inputs from agencies.)