All articles tagged with #rouble
The Russian rouble strengthened past 100 to the U.S. dollar after President Putin's decree allowed European buyers of Russian gas to use alternative banks for currency conversion, bypassing sanctions on Gazprombank. This move has helped stabilize the rouble, which had been weakened by U.S. sanctions, and is expected to continue improving as foreign trade participants find new ways to settle accounts.
The Bank of Russia unexpectedly raised interest rates by 200 basis points to 15%, marking the fourth consecutive increase, in response to a weak rouble, persistent inflation, and increased government spending. The central bank has raised rates by a total of 750 basis points since July. Inflationary pressures have exceeded the bank's expectations, driven by high lending growth and domestic demand outpacing the provision of goods and services. The bank acknowledged that it may not achieve its 4% inflation target next year and forecasted year-end inflation for 2024 at 4-4.5%. The decision caused the rouble to surge against the dollar.
Russian President Vladimir Putin accused the West of losing touch with reality over the Ukraine war and warned that their lack of compromise could have consequences. Putin blamed the West for fomenting the conflict and criticized their obsession with pushing their interests at any cost. As he spoke, the rouble fell below 100 per U.S. dollar. The war in Ukraine, triggered by Russia's invasion in 2022, has strained Russia's ties with the West. While the West sees it as Moscow's strategic blunder, Putin presents it as part of a larger struggle with the United States.
Russia's central bank has raised its key interest rate by 100 basis points to 13 percent, marking the third rate hike in two months, as the country grapples with higher inflation and a weaker rouble. Inflation in Russia has accelerated in recent months, remaining stubbornly high, and the central bank has failed to meet its target of four percent. The bank cited high inflationary pressure and the depreciation of the rouble as reasons for the rate hike. It also adjusted its year-end forecast for inflation and indicated the possibility of further rate increases.
The Russian central bank has raised its key interest rate by 100 basis points to 13%, marking the third consecutive rate hike in response to inflationary pressures and a weak rouble. The bank warned that rates would need to stay high for a significant period of time until it is convinced of a sustainable inflation slowdown. It also raised its 2023 inflation forecast to 6-7%, above the 4% target, and warned that a tightening labor market would limit further economic growth. The central bank indicated that it may consider further rate increases in upcoming meetings.
The Russian rouble gave up its early gains in volatile trade after the central bank raised interest rates by 350 basis points to 12% at an emergency meeting. The rate hike was expected as the rouble had plummeted past the 100 threshold against the dollar on Monday. The central bank's intervention came after the Kremlin criticized its loose monetary policy. The rouble has lost more than a fifth of its value against the dollar since the Ukraine war began. The currency reached a near 17-month low of 101.75 on Monday and briefly traded at 92.60 on Tuesday morning.
Russia launched drone and missile attacks on Odesa, Ukraine, damaging buildings and injuring two supermarket employees; Ukraine's president visited troops in Donetsk; US ambassador met with jailed Wall Street Journal reporter; US to send $200m in security assistance to Ukraine; Russian rouble weakens amid economic pressure; Zelenskiy promises justice for shelling victims; German finance minister pledges support to Ukraine; Ukrainian military pushes Russian forces out of pockets of territory; Dutch and British fighter jets intercept Russian aircraft; Russian diplomats leave Moldova amid deteriorating relations.
The Russian rouble, which has lost a quarter of its value against the dollar since February, reversed its downward trend and rose back to the strong side of 100 against the dollar after Russia's central bank announced an extraordinary policy meeting for Tuesday, sparking expectations of another significant rate hike. The rouble had sunk to its weakest level in almost 17 months on Monday, but it recovered all intraday losses and ended the day up 1.8%. President Putin's economic adviser blamed the central bank's loose policy for the rouble's decline and urged higher rates to curb inflation and lending. The central bank has not commented on the possibility of an emergency rate hike.
The dollar rose against the rouble, but pulled back from a 15-month high, while the yen gained modestly against the greenback following comments from Japan's top currency diplomat. The Russian rouble weakened 0.90% versus the greenback at 84.40 per dollar after hitting its weakest level since March 2022. The dollar index fell 0.049% at 102.680, with safe-haven support helping to keep it near the unchanged mark as concerns about a slowing global economy linger in the midst of aggressive tightening actions by multiple central banks around the globe.
The Russian rouble has fallen to its lowest levels against the dollar and euro since April last year due to a foreign currency crunch in Moscow and the sale of Western businesses in Russia. The rouble has weakened from about 60 per dollar to more than 80 this week due to the West imposing a price cap on Russian oil. The reported transfer of $1.21bn to Shell for its stake in the Far East Sakhalin-2 gas project was cited as a major factor. The rouble is the third-worst performer among global currencies so far this year.