Analysts attribute the drop to a simultaneous recovery in imports and decline in exports
The Russian ruble has fallen to its lowest exchange rate against the US dollar and euro since last April, data from the Moscow Exchange showed on Thursday.
The currency dropped 0.33% to 80.1 rubles to the dollar around 06:20 GMT, the weakest rate since April 18, 2022. The ruble also slid to nearly 88 against the euro, the lowest since April 14 last year.
The continued decline of the ruble against Western currencies stems from a simultaneous rise in imports and decline in exports, Anton Kravchenko, head of the equities department at First management company, told RBK news outlet. Lower foreign currency revenue inflows from exports have caused a deficit in the state budget, exacerbated by the outflow of the currency as companies build new supply chains to buy more products from abroad.
Kravchenko added that the ruble may also be weakening due to increased demand from banks, which are restoring their currency positions after the recent payment on Russian Eurobonds.
Other experts attribute the drop in the ruble’s exchange rate to a reduction in hard currency sales from the National Wealth Fund due to rising oil prices.
“We believe that the potential to test the range of 80-81 rubles against the dollar is technically possible, but… we do not rule out a dollar correction in the future,” Yegor Zhilnikov, chief economic analyst from Promsvyazbank, told the news outlet.