Russian Ruble Depreciates below 100 to the US Dollar
RUSSIA, Oct. 6 – The Russian ruble depreciated below 100 to the US Dollar, the level not seen since March 2021, weighed by lower prices for country’s key commodity oil and the lost support of a month-end tax period.
The currency has weakened by almost 40% since the beginning of the year amid a stronger dollar and unbalanced trade flows.
The gradual opening of financial markets allowed firms & households to flee to safer foreign assets from “friendly” nations.
Meanwhile, the recovery of supply chains following sweeping sanctions from the West restored inflows of goods and services into the Russian economy, raising demand for hard currency and adding to selling pressure on the ruble.
In turn, said sanctions also hampered export turnover, as the oil embargo from the EU and the G7 cost Moscow its main clients.
The woes were further exacerbated by a Chinese unstable recovery and capacity crisis for key oil refiners.
The last time, ruble touched triple digits Russian’s central bank hiked its key rate by 350 bps, Trading Economics reports.
