Ruble takes major dive against dollar

The Russian currency plunged to 113 rubles against the dollar on Wednesday amid mounting geopolitical instability

The Russian ruble has continued to slide, reaching 113 against the US dollar on Wednesday, trading data from the Moscow Exchange (MOEX) showed. The sharp decline comes amid Western sanctions and growing geopolitical uncertainty, analysts say.

On Wednesday, the ruble was trading at its lowest since March 2022. The Russian currency has fallen to 119 to the euro.

The ruble’s slump has been exacerbated by the latest Western sanctions, analysts told business daily RBK.
Last week, the US imposed a new round of penalties against a number of companies in the Russian financial sector. The measures targeted Gazprombank, Russia’s third-largest bank, which has played a key role in processing payments for export operations.

“A lot depends on how soon Russia will form alternative channels for inflow and outflow of foreign currency, capable of matching its demand and supply,” Aleksandr Shepelev, a stock market expert at BCS World of Investments, told news website Gazeta.Ru.

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This would allow a gradual easing of pressure on the Russian currency, the analyst noted. “And while there is a serious imbalance in the market and the financial authorities are in no hurry to intervene in the situation, the pressure on the ruble will remain,” he said.