Russian Rouble Faces Volatility Amid US-Russia Talks
The Russian rouble weakened as it approached 80 to the dollar, affected by the upcoming U.S.-Russia talks and declining export revenues. The currency's volatility is expected to rise with an important meeting between Presidents Trump and Putin. Analysts highlight budget deficits and reduced foreign currency sales as contributing factors.
The Russian rouble retreated on Thursday from a recent high, approaching 80 to the dollar, influenced by the anticipation of U.S.-Russia talks scheduled for this week. The currency was further strained by decreased government foreign exchange interventions and declining export revenues.
Markets in Russia have been unstable following President Donald Trump's warning of sanctions unless peace is achieved in Ukraine by August 8. Attention is now focused on the upcoming August 15 meeting between Trump and Russian President Vladimir Putin, set to occur in Alaska.
Financial analyst Maxim Timoshenko from Russian Standard Bank noted the unpredictable nature of the meeting's outcome, suggesting potential volatility for the rouble in the near future. Factors like deferred import demand, reduced exports, and a significant budget deficit further pressure the rouble.
(With inputs from agencies.)
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