Rouble sinks to over 15-month low vs dollar on political risk concern
Business
Decline triggered by Prigozhin's aborted march toward Moscow
(Reuters) – The Russian rouble slumped to a more than 15-month low against the dollar and euro on Friday, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend and lacking support drivers.
By 0734 GMT, the rouble was 0.8 per cent weaker against the dollar at 88.26 after earlier hitting 88.6775, its weakest point since March 29, 2022.
It lost 0.9pc to trade at 95.97 versus the euro after also hitting a 15-month low of 96.3225. It shed 0.7pc against the yuan to 12.15, earlier clipping a more than 14-month low.
"The rouble continues to crumble," Alor Broker said in a note. "It lost another 1.4pc in value yesterday, despite stabilising oil.”
"The target for the dollar-rouble pair of 90 is approaching and is likely to be reached."
Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin's aborted weekend march toward Moscow reverberated through markets and left questions over President Vladimir Putin's grip on power.
The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed.
Brent crude oil, a global benchmark for Russia's main export, was up 0.4pc at $74.70 a barrel.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 1.3pc to 994.2 points. The rouble-based MOEX Russian index was 0.4pc lower at 2,785.8 points.
Shares in Gazprom dropped about 0.7pc after the energy giant's shareholders approved the board's recommendation against paying full-year 2022 dividends after allocating a half-year dividend of 1.2 trillion roubles ($13.6 billion).
