Rouble Is On Its Way To Hitting A Five-Month Low Price As Dollar Price SurgesDecember 19, 2022
The Russian rouble hasn’t been having a good time for the past few days against the trading price of the dollar. The value of the rouble has not been performing well against the greenback.
Russian Rouble is declining
The trading value of the Russian rouble has started to move in a negative direction, which is not a good sign for RUB investors.
The traders are in shock because the trading price of the rouble has been declining very fast against the dollar. The graph shows that the trading price of the Russian rouble is about to hit a 5-month low.
It is a huge concern for investors as the price of the Russian currency is about to hit a 5-month low. If the traders are not able to do anything about the declining price of the rouble, it will eventually hit that level.
What is causing the dip?
The main reason the price of the rouble is losing its worth against the dollar is because of the oil restrictions the country is facing.
It is the west that mainly comprises the EU and the American region that has decided to put a cap on Russian oil supplies.
The west is retaliating against the Ukrainian invasion by the Russian military. As Russia is a nuclear power, it is not wise for the west to pick a fight on the battlefield.
Instead, they are attempting to attack Russia economically by launching waves of sanctions against the country.
In the past couple of years, Russia has also become one of the key suppliers of oil throughout the world.
Russia seems to be on the same page as the majority of the gulf and African countries wanting to remove the USD as the global reserves currency.
It has started to carry out its trades using currencies other than the dollar, the euro, and the sterling. Therefore, the west has decided to limit the oil exports of Russia by setting a price cap.
By increasing the selling pressure, the west is trying to destabilize the economy of Russia. It seems that the strategy adopted by the west has started to do its magic.
The value of the rouble has started to weaken while the dollar is gaining stronger ground against its value.
Rouble’s Trading Price Dip
The value of the Russian rouble dipped to 64.95 against the price of the dollar. The drop in the price of the rouble was first recorded at the Moscow forex market.
The last time the Russian rouble fell to such a low price was back on July 6. Having experienced a huge drop, the price of the rouble was able to gain some ground versus the dollar.
On the same trading day, the value of the rouble was able to grow higher after witnessing a great plunge. The currency’s value recovered and came all the way up to 64.53, ending the day at this figure.
The rouble has registered losses against the trading prices of the euro and the Chinese yuan. Against the euro, the trading value of the rouble dipped by 0.6%, experiencing an 11-week low.
On the other hand, the trading price of the Russian rouble experienced a 0.9% dip against the trading price of the yuan. At the time of writing, the rouble trades at 9.25 against the yuan.
Rouble’s Price May Surge
Although the Russian rouble is currently facing a downtrend, there are chances for the currency to recover versus the dollar.
The United States economy has a higher chance of facing a recession in the year 2023. The analysts expect they will see a dip in the dollar price once the recession hits the country.
At that time, the value of the dollar will plummet, causing the trading values of the major currencies from the west to follow its lead.
This would eventually help the Russian rouble to make up for the losses it has incurred so far.