The Russian rouble weakened towards 80 to the dollar on Thursday, moving away from a one-week high. While hopes for positive U.S.-Russia talks this week provided some support, the rouble was held back by reduced government foreign exchange (FX) interventions and declining export revenues.
Russian markets have been volatile since U.S. President Donald Trump set a deadline for Russia to agree to peace in Ukraine or face increased sanctions. The upcoming August 15 meeting between Trump and Russian President Vladimir Putin in Alaska has heightened market uncertainty, with experts predicting potential volatility for the rouble in the coming days.
At 0930 GMT, the rouble was down 0.5% at 79.85 to the dollar and 0.3% weaker against the Chinese yuan at 11.10. Brent crude oil, Russia’s main export, was up 0.4% at $65.87 a barrel.
Timoshenko of Russian Standard Bank pointed to factors such as deferred import demand, declining export revenues, and Russia’s rising budget deficit as contributing to the rouble’s struggles.
