Rouble Falters Amid U.S.-Russia Talks on Ukraine

The Russian rouble weakened against the U.S. dollar and Chinese yuan despite a recent rally, following U.S.-Russia discussions on the Ukraine conflict. Foreign investments strengthened the rouble earlier, benefiting Russia's central bank but impacting exporters and state revenue dependent on oil and gas traded in dollars.

The Russian rouble saw a reversal in its upward trend, weakening against the U.S. dollar and China's yuan. This development followed talks between U.S. President Donald Trump and Russian President Vladimir Putin, primarily focusing on the ongoing conflict in Ukraine.

By 0840 GMT Wednesday, the rouble had decreased by 1.3% to 82.80 against the dollar and by 1.2% to 11.36 against the yuan on the Moscow Stock Exchange. Despite this drop, the Russian currency has remained up by 27% against the dollar this year, buoyed by hopes of reduced tensions between Russia and the United States.

Deputy Prime Minister Alexander Novak attributed the rouble's earlier strength to a return of foreign investors to Russia, leading to capital inflows. Yet, this economic boost poses challenges for exporters and state revenues heavily reliant on oil and gas deals in dollars.

(With inputs from agencies.)