The Russian rouble has declined beyond 101 against the dollar, reaching its lowest point since August due to plummeting oil prices affecting Putin’s administration.
Earlier, the rouble hit 101.50 against the dollar, its weakest rate since August 14. It depreciated by 0.6%.
Against the British pound, it slid 0.7%, approaching 123 to the pound. Similarly, it was down by 0.7% versus the euro, standing at 106.46.
In August, when the rouble previously reached triple digits, the Bank of Russia responded with a significant 350 basis-point interest rate increase to 12%. Since then, the rate has been adjusted up to 13%.
The Kremlin indicated there was no reason to panic. On Thursday, President Vladimir Putin recognized the weakening of the rouble as an issue but also praised the nation’s economic stamina amidst Western sanctions due to Russia’s actions in Ukraine.
Furthermore, Moscow announced today the removal of its ban on pipeline diesel exports through ports. This decision rolls back the majority of limitations set on September 21.
Lastly, Brent crude oil, which serves as a global reference for Russia’s primary export, has seen a 13% reduction to around $84 since last Thursday. This denotes a decrease of over $13 per barrel, nearing its late August lows.
