Rouble's Challenge: Currency Fluctuations Amidst Oil Price Drop
The Russian rouble faced depreciation against the dollar due to decreased fiscal support from upcoming tax payments. It showed mixed performance against major currencies this week despite pressures from declining oil prices. The rouble, vital to Russia's economy, fluctuates with export revenues, especially from the oil sector.
- Country:
- Russia
The Russian rouble experienced a downturn against the dollar on Thursday as it braces for the upcoming month-end tax payments which traditionally offer fiscal support. The currency slipped 0.12% early in the day following a minor gain in the previous session, according to LSEG's OTC data.
Despite this, the rouble showed resilience against the Chinese yuan, strengthening by 0.11%. Exporters typically sell foreign currency to cover local tax liabilities, temporarily boosting the rouble's performance. However, the shadow of falling oil prices looms large over the currency.
Oil, Russia's main export commodity, saw a decline in Brent crude prices by 0.6%, dropping to $67.64 per barrel. This decline places additional pressure on the rouble, as the exchange rate is heavily tied to foreign currency revenues from oil exports, significantly impacting Russia's broader economic landscape.
(With inputs from agencies.)
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