The ruble fell to its lowest level since early May, above 70 against the dollar, extending this week’s slide on Wednesday morning as investors spooked over Russian oil and gas sanctions
At 06:08 GMT (08:08 in Romania), the ruble fell 1.9% against the dollar to 70.20 after previously reaching 70.6775 per dollar, Reuters reported.
It also fell 1.4% to trade at 74.50 per euro, having previously breached the 75 mark for the first time since late April.
The ruble has already lost more than 7% against the US dollar this week on fears that oil price caps and embargoes will reduce Russia’s export earnings.
“The ruble is depreciating as Russia’s balance of payments weakens,” said Rachel Ziemba, founder of Ziemba Insights.
“Russia’s export earnings have declined in recent months as gas exports have fallen sharply and the EU oil embargo is limiting oil revenues,” he added.
Brent crude, the global benchmark for Russia’s main export, rose 0.3 percent to $80.2 a barrel.
The ruble remains the world’s best-performing currency this year after being buoyed by capital controls and a collapse in imports following Western sanctions.
Source: Hot News
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