Russian ruble recorded another devaluation against the US dollar

September 10, 2018 5:07 amComments Off on Russian ruble recorded another devaluation against the US dollarViews: 43

Russian rubleThe Russian ruble recorded another devaluation against the dollar, reaching more than 70 rubles on Monday for the first time since March 2016, still under pressure from worries and uncertainty about US sanctions. At the opening of the market earlier today, one dollar was exchanged for 70.16 rubles, thus the annual losses for the Russian currency rose to 19%.

The Russian Central Bank will meet at the end of the week on the country’s monetary policy. The bank’s governor Elvira Nabiullina said some time ago that there are two main options – maintaining the current level of the main rate of 7.25% or raising interest rates.

And while high-ranking Russian officials continue to exercise verbal pressure on the central bank lately, the institution remains silent.

The Russian economic adviser Andrey Belousov said on Monday that a possible increase in interest rates would be “highly undesirable” after Prime Minister Dmitry Medvedev said last week that interest rates on loans in Russia should be lower.

But markets and investors consider Elvira Nabiullina a stable and independent governor of the central bank.

The fall in Russian ruble value is expected to have a limited impact on export-oriented companies that use the attractively high levels of foreign exchange by exchanging their euro or dollar revenue in Russian rubles for their local market needs as tax payments in the second half of months.

On the capital markets, the Russian stocks remained stable due to rising oil prices, which formed a large part of the country’s exports.

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