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Russian Rouble Weakens Past 80 Per Dollar for First Time Since April
The Russian rouble weakened past the key psychological level of 80 per U.S. dollar on Wednesday, hitting a milestone not seen since April 3, according to LSEG market data. The currency's slide reflects mounting pressure from both domestic economic cycles and external market volatility.
Drivers of the Decline
Analysts attributed the rouble's depreciation primarily to the end of a seasonal tax payment period. During this time, Russian exporting companies typically convert their foreign currency revenues into roubles to meet local tax obligations, which temporarily boosts demand for the currency. With that period of support now over, the rouble has become more exposed to market headwinds.
Unstable prices for oil, Russia's primary export, were also cited as a contributing factor to the currency's decline. Additionally, intensified Ukrainian attacks on Russian oil refineries and infrastructure since May have reportedly led to domestic fuel shortages and rising inflation, placing further stress on the Russian economy.
AdPerformance and Key Levels
On the day, the rouble depreciated 1.9% against the U.S. dollar. The move extends a period of significant weakness for the currency, which has fallen a total of 14% against the dollar since May 20.
The rouble also lost ground against the Chinese yuan, weakening 1% to reach 11.8 per yuan. The yuan has become Russia’s most-traded foreign currency, making this exchange rate a critical benchmark for the country's international trade.
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