Summary This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, Dec 27 (Reuters) - The rouble dived around 3% against the dollar on Tuesday, failing to consolidate a recovery from last week's slide as the market comes to terms with the prospect of lower export revenue in the wake of restrictions on Russian oil.
The rouble lost about 8% against the dollar last week and is on course for a hefty monthly decline after an oil embargo and price cap came into force. The finance ministry has said the recent slump was related to recovering imports.
By 1519 GMT the rouble was 3% weaker against the dollar at 71.36 , heading back towards the almost eight-month low of 72.6325 struck last week.
"At the end of December, the rouble is likely to remain extremely volatile as the market will need to find a new equilibrium under changed trade flows and increased sanctions pressure," BCS World of Investments said in a note.
"This week, the rouble is expected to fluctuate in the range of 68-71 (per dollar)."
Against the euro, the rouble lost 3.4% to 76.03 . Against the yuan, it was down 3.3% at 10.09 .
The rouble just about remains the world's best-performing major currency against the dollar this year, supported by capital controls and reduced imports.
Now, with exports and revenues falling, a weaker rouble is more beneficial, First Deputy Prime Minister Andrei Belousov said on Tuesday.
"The strong rouble has played its role," Belousov said. "In these conditions ... it would be good to have a rouble rate of 70-80 per dollar."
Brent crude oil , a global benchmark for Russia's main export, was up 1% at $84.8 a barrel while Russian stock indexes were mixed.
The dollar-denominated RTS index (.IRTS) was down 2.9% at 948.8 points. The rouble-based MOEX Russian index (.IMOEX) was 0.5% higher at 2,148.8 points after earlier touching its highest in nearly two weeks.
Reporting by Alexander Marrow; Editing by David Goodman and Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles.
Infinite-Outcome-591 on December 27th, 2022 at 16:35 UTC »
This is good news. The rouble should flat line. Completely.
miso25 on December 27th, 2022 at 12:29 UTC »
The rouble lost about 8% against the dollar last week and is on course for a monthly decline after an oil embargo and price cap came into force. The finance ministry has said the recent slump was related to recovering imports.
Overall-Yellow-2938 on December 27th, 2022 at 12:25 UTC »
Its not even tradable like usual. If they had not pulled every trick to prop that up artificial it woul be way way way worse.
Little edit cause of recent events. Hastag RUNONRUSSIANBANKS ist trending in part because more and more russians seem to have troubles getting their hands on their own money as of lately.
This should get interesting.