Ruble continues major dive against dollar
Date
11/30/2024 1:52:38 PM
(MENAFN) The Russian ruble continued its decline on Wednesday, reaching 113 against the US dollar, its lowest level since March 2022, according to trading data from the Moscow Exchange (MOEX). The drop is attributed to ongoing Western sanctions and increasing geopolitical tensions, say analysts. The ruble also fell to 119 against the euro.
The latest slide comes in the wake of new US sanctions targeting key players in the Russian financial sector, including Gazprombank, Russia’s third-largest bank, which is critical for processing export payments. Analysts argue that the ruble’s weakness could persist unless Russia develops alternative channels for foreign currency inflows and outflows to stabilize the market.
Seasonal demand for imports, higher budget spending at the end of the year, and global pressure on the ruble, along with the strengthening of the US dollar, are also contributing to the currency's slump. Despite this, analysts suggest that the Russian central bank might step in to help support the ruble if necessary.
Russian Finance Minister Anton Siluanov commented on the ruble's weakness on Tuesday, pointing out that it could be advantageous for export businesses under the current geopolitical climate. While acknowledging the ruble’s decline, Siluanov stated that a weaker exchange rate could help boost exports and increase ruble-denominated revenue for the government.
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