Putin and Witkoff's Pivotal Kremlin Talks: A Currency in Limbo

The financial markets in Russia anxiously await the results of a strategic meeting between President Vladimir Putin and U.S. special envoy Steve Witkoff at the Kremlin. The discussion, deemed 'useful and constructive' by Kremlin aide Yuri Ushakov, takes place just before a critical deadline set by President Donald Trump approaches.

On Wednesday, the rouble held steady at around 80 to the dollar, according to data from the Moscow Stock Exchange, though it saw a slight decrease against the yuan by 0.2%. Meanwhile, Russia's main stock market index also experienced a marginal drop of 0.15%, as analysts from T-Bank noted the market's anticipation of the meeting's outcome.

The situation is tense as new sanctions against Russia loom if Witkoff's efforts to secure peace in Ukraine falter. Analysts suggest the rouble may be overvalued, poised for a downturn without a positive resolution. As U.S. actions could target Russia's energy and banking sectors, both economies brace for potential impacts.

(With inputs from agencies.)