Rouble Reacts Amid U.S. Sanctions Speculation

The Russian rouble saw a minor increase against the U.S. dollar while holding steady against China's yuan on Monday. This change occurs as Steve Witkoff, U.S. President Donald Trump's special envoy, prepares to visit Russia amid discussions of potentially new sanctions from Washington.

As per the latest data from LSEG, the rouble increased by 0.1% to 79.92 to the dollar. It stayed constant at 11.06 against the yuan, which remains the most actively traded foreign currency in Russia. Analysts from the Bank of Saint Petersburg suggest the rouble might remain between 11.00 and 11.20 per yuan until the specifics of U.S. sanctions are disclosed.

The possibility of additional sanctions stems from Trump's threat to penalize Moscow and nations purchasing Russia's energy exports, principally China and India, if significant progress towards a peace deal in Ukraine isn't made by August 8. A Reuters poll last week forecasted the rouble could weaken to 100 against the dollar in the coming 12 months, a 20% drop from its current value.

(With inputs from agencies.)