Rouble's Plunge: Geopolitical Tensions Weigh on Russian Currency

On Tuesday, the Russian rouble further plummeted against the dollar and China's yuan, responding to a new, shorter deadline set by U.S. President Donald Trump. This deadline was linked to Moscow's need to make progress in ending the war in Ukraine.

By 1530 GMT, the rouble had fallen 1.5% to 82.44 per dollar, marking its weakest point since May 12. The central bank officially set the dollar exchange rate at 82.22 roubles, the first time it's surpassed 82 since mid-April.

This decline signifies the rouble's continued struggle, losing 4.7% against the dollar since July 24, exacerbated by a substantial rate cut from the central bank. President Trump's frustration with Russia became evident as he warned of consequences unless Moscow moves toward resolving the conflict within 10 to 12 days.

Taras Skvortsov, CFO of Sberbank, noted the trend of the dollar's rise against the rouble, largely due to geopolitical tensions and Trump's comments. However, the long-term impact remains uncertain.

Sberbank forecasts the rouble may weaken to approximately 90 per dollar by year's end, while also dropping 0.8% to 11.43 against the Chinese yuan, Russia's top-traded foreign currency.

(With inputs from agencies.)