MOSCOW (Reuters) – The ruble fell about 3% against the dollar on Tuesday, failing to consolidate a recovery from last week’s decline as the market approached the prospect of lower export earnings in the wake of restrictions on Russian oil. .
The ruble lost about 8% against the dollar last week and is on track for a significant monthly decline after the oil embargo and price caps took effect. The Finance Ministry said the latest decline was related to import recovery.
By 1519 GMT, the ruble was 3% weaker against the dollar at 71.36, heading towards a nearly eight-month low of 72.6325 hit last week.
“In the end of December, the ruble is likely to remain very volatile as the market will need to find a new equilibrium as trade flows change and sanctions pressures increase,” BCS World of Investments said in a note.
This week, the ruble is expected to fluctuate in the range of 68-71 (per dollar).
Against the euro, the ruble lost 3.4%, to 76.03. Against the yuan, it fell 3.3% to 10.09.
The ruble remains almost the world best performance The main currency against the dollar this year, supported by capital controls and lower imports.
Now, with lower exports and revenues, a weaker ruble is more beneficial, First Deputy Prime Minister Andrei Belousov said on Tuesday.
“The strong ruble played its part,” said Belousov. “Under these conditions … it would be good if the ruble rate was 70-80 to one dollar.”
Brent crude, a global benchmark for Russia’s main export, rose 1% to $84.8 a barrel while Russian stock indexes were mixed.
Dollar-denominated RTS index (.IRTS) It decreased by 2.9%, at 948.8 points. The Russian ruble-based MOEX index (.IMOEX) It was up 0.5% at 2,148.8 points, after earlier touching its highest level in nearly two weeks.
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Reporting by Alexandre Maru. Editing by David Goodman and Emilia Sithole Matares
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