The Russian Ruble weakened on Tuesday, trying to rebound slightly from last week’s slump on expectations of lower export revenues following the economic embargo on Russian oil.
The ruble has lost nearly 8% against the dollar last week. The ruble continues its monthly decline after the oil embargo and price cap came into effect. The finance ministry said the latest drop was related to the recovery of imports.
The ruble fell 1.2% against the dollar to 70.10 in early trading hours on Tuesday. But it’s still a little off from the nearly eight-month low of 72.6325 it saw last week.
“It can be extremely choppy”
“At the end of December, the ruble is likely to remain extremely volatile as the market will need to find a new balance under changing trade flows and increasing sanctions pressure,” international investment firm BCS World of Investments said in a note to clients.
The ruble remains the world’s best-performing currency against the dollar this year, supported by capital controls and declining imports.
“Weak ruble is more useful”
Now, with exports and revenues falling, a weaker ruble is more beneficial, TASS news agency quoted First Deputy Prime Minister Andrei Belousov as saying on Tuesday.
“The strong ruble played its part,” said Belousov. And he added: In these conditions, it would be good to have a ruble exchange rate between 70-80 bands per US dollar.