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Russian rouble heads towards five-month low against dollar

By Jake Cordell (Reuters) -The Russian rouble hit its weakest level against the U.S. dollar in more than five months on Thursday before paring losses as the West's price cap on...
Russian rouble heads towards five-month low against dollar © Reuters. FILE PHOTO: A picture illustration shows rolled Russian rouble banknotes on a table in Warsaw, Poland, January 22, 2016. REUTERS/Kacper Pempel//File Photo
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By Jake Cordell

(Reuters) -The Russian rouble hit its weakest level against the U.S. dollar in more than five months on Thursday before paring losses as the West's price cap on Russia's oil exports increased selling pressure.

The rouble fell to 64.95 against the U.S. dollar in early trade in Moscow for its lowest reading since July 6. It later recouped some ground to trade down 0.8% for the session at 64.53 by 1300 GMT.

Against the euro, the rouble hit an 11-week low before recovering slightly, down 0.6% at 68.73, while the currency was 0.9% lower against the Chinese yuan at 9.25.

After crashing to all-time lows when Moscow sent tens of thousands of troops into Ukraine on Feb. 24 and the West imposed sanctions on Russia, strict capital controls have helped the rouble to rebound.

At a televised meeting with government officials on Thursday, President Vladimir Putin vowed Russian had defied Western attempts to destroy its economy and hailed the currency's performance.

"After a serious surge in March and April, price levels in Russia have hardly changed since May, and the Russian rouble has become one of the world's strongest currencies this year," he said.

However, fears of a global recession combined with the European Union's embargo on Russian oil exports and a Western price cap that took effect early this month have increased the pressure on the Russian currency.

Analysts said a fall in foreign currency earnings by Russian exporters - who are required to convert at least half of their foreign earnings into roubles - was pushing the rouble down.

Russian stock indexes were down sharply on Thursday.

The dollar-denominated RTS index lost 2.2% to stand at 1,037.8 points, while the rouble-based MOEX Russian index was also down 1.7% at 2,123.4 points.

A central bank meeting on Friday is also in focus. The regulator is expected to hold interest rates at 7.5% in its final rate-setting decision of the year.

For Russian equities guide see

For Russian treasury bonds see

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01-05-2024 10:45:17 (UTC+7)

EUR/USD

1.0658

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1.0658

-0.0008 (-0.07%)

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1.2475

-0.0015 (-0.12%)

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USD/JPY

157.91

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AUD/USD

0.6469

-0.0003 (-0.05%)

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USD/CAD

1.3780

+0.0003 (+0.03%)

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168.32

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    EUR/USD 1.0658 ↑ Sell  
    GBP/USD 1.2475 ↑ Sell  
    USD/JPY 157.91 ↑ Buy  
    AUD/USD 0.6469 Neutral  
    USD/CAD 1.3780 ↑ Buy  
    EUR/JPY 168.32 ↑ Buy  
    EUR/CHF 0.9808 Neutral  
    Gold 2,295.80 ↑ Sell  
    Silver 26.677 ↑ Sell  
    Copper 4.5305 ↑ Buy  
    Crude Oil WTI 81.14 ↑ Sell  
    Brent Oil 85.62 ↑ Sell  
    Natural Gas 1.946 ↑ Sell  
    US Coffee C 213.73 ↑ Sell  
    Euro Stoxx 50 4,920.55 ↑ Sell  
    S&P 500 5,035.69 ↑ Sell  
    DAX 17,921.95 ↑ Sell  
    FTSE 100 8,144.13 Sell  
    Hang Seng 17,763.03 ↑ Sell  
    Small Cap 2000 1,973.05 ↑ Sell  
    IBEX 35 10,854.40 Neutral  
    BASF 49.155 ↑ Sell  
    Bayer 27.35 ↑ Sell  
    Allianz 266.60 ↑ Sell  
    Adidas 226.40 ↑ Sell  
    Lufthansa 6.714 Neutral  
    Siemens AG 175.90 ↑ Sell  
    Deutsche Bank AG 15.010 Neutral  
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