Russian rouble tumbles to lowest level since April 2022

The rouble tumbled 1.1% against the U.S. dollar to 82.28 by 0930 Moscow time, and fell 1% to 90.06 against the euro.

Traders said the rouble was under pressure due to a cocktail of problems including the sale of Western assets to domestic investors, which stoked demand for dollars, while lower prices for oil in March cut export revenues.

The rouble is the third worst performing currency in the world, year to date, behind only the Egyptian pound and the Argentine peso, according to Reuters calculations. The rouble has so far had the worst week against the dollar since July 2022, according to Reuters calculations.

Traders, though, said that the recent rise in oil prices since the falls of March would likely support the currency in future weeks. Russia is the world’s second largest oil exporter after Saudi Arabia.

Oil, the lifeblood of the Russian economy, fell in late March but after banking turmoil in the West and an
OPEC+ decision to cut output, it has rebounded in recent days.

Brent crude oil traded as low as $70 in late March but was trading at $85 yesterday.

Finance Minister Anton Siluanov made a verbal intervention on Thursday when asked by state television about the fall of the rouble.

“Prices for our energy have now gone up and this is a signal that there will be more foreign currency coming into the country,” he said. “Consequently, this will lead to the rouble rate having a tendency to strengthen.”