Rouble Hits New Record Low

The Russian currency fell to new record lows against the dollar and the euro on Wednesday, October 29, despite the slight recovery of oil prices.

The rouble fell 0.5% in early trading in Moscow. It was hit by Western sanctions on Russia and the slow economic performance of the country. According to market participants, the recent depreciation was also ‘helped’ by speculative bets on rouble’s weakness.

In the first minutes of trading on Moscow exchange, the currency went down by 0.5%, registering the lowest level ever. It reached 47.89 against the euro-dollar basket, used by the Russian Central Bank to track domestic currency market.

Compared to the dollar, the Russian currency met a depreciation of more than 23%, reaching the weakest level ever of 42.72. Against the euro, the rouble eased to 54.39.

Russian Central bank moved the rouble’s trading band from 38.80 to 47.80 against the basket close to the end of the main trading session. The band was shifted 70 times so far in October, moving it by five kopecks every time after selling $350 million at the lower end of the corridor, according to the intervention rule. The bank also added that it spent $2.49 billion to ease downside pressure on the rouble on October 27.

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