On August 1, the Russian rouble showed signs of stabilization, boosted by soaring oil prices but facing challenges due to geopolitical tensions after a second drone strike in three days targeted Moscow’s financial district.
At 0825 GMT, the rouble weakened by 0.1% against the dollar, settling at 91.67. In the previous session, it hit a more than three-week low, nearing 93.
Against the euro, the rouble gained 0.2%, trading at 100.61, and strengthened 0.3% against the yuan to 12.77.
Russian military reported that its anti-aircraft units successfully foiled a Ukrainian “terrorist attack” on Tuesday, downing drones aimed at Moscow. However, one drone, uncontrollable by the units, struck the same high-rise tower targeted on Sunday.
The ongoing geopolitical situation and economic sanctions have been major concerns for Russia’s business elite since the war in Ukraine began. The recent drone strikes in Moscow’s financial district are now prompting companies to reevaluate their employees’ safety.
Brent crude oil, a significant benchmark for Russia’s primary export, experienced a slight decline of 0.6% to $84.89 a barrel. In the previous session, it reached a 3-1/2 month high.
Typically, the rouble experiences a sharp drop after favorable month-end tax payments, due in July on Friday. However, this week, the Russian currency has shown more resilience than usual, with experts hoping it may attempt to stabilize below 90 against the dollar.
Russian stock indexes reflected the cautious sentiment in the market, with the dollar-denominated RTS index down 0.3% to 1,054.6 points, and the rouble-based MOEX Russian index 0.1% lower at 3,070.0 points.
As the situation continues to unfold, investors are closely monitoring developments in Russia’s financial landscape.
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