Rouble’s Trading Price Experiences a Great Loss Versus DollarDecember 18, 2022
The value of the Russian rouble has been dealt a huge blow in the latest trading session. The Russian rouble ended up taking a major hit and its value has dipped tremendously against the dollar.
As per the reports, the value of the Russian rouble has ended up experiencing more than a 5-month low versus the trading price of the dollar.
The West Implements a Cap on Russian Oil Exports
The West is constantly increasing its pressure on Russia in order to cap its oil exports. This has caused the selling pressure to increase for the Russian rouble.
The West has been very aggressive against Russia ever since the country waged a war against Ukraine, a country in Europe.
Since then, the entire West has been in unrest and they are doing whatever they can in order to hit Russia.
They cannot do it openly as Russia has made it clear any country interfering in their matter with Ukraine would end up increasing the conflict.
The president of Russia, Vladimir Putin had made it crystal clear to the west that its interference in their matter with Ukraine may lead to a greater war.
He warned that they will use their nuclear power against those who try to pressure or interfere with their policies.
Although the West has gotten Vladimir Putin’s message they are now trying to deal with things politically. They are issuing sanctions and import/export restrictions on the country.
They have already implemented more than 8 waves of sanctions against the country. They are hoping to one day, force Russia out of Ukraine.
With every wave of sanctions, the West is forcing Russia into a corner. The country’s economy has been hit badly and now, the Feds are limiting the oil supply that Russia can carry out across the globe.
Russian Rouble’s Trading Price
The Russian rouble recorded a major downtrend and its price hit a 5-month low versus the greenback. The value of the rouble fell to a low of 64.95 in the latest trading session.
The dip was recorded in the early morning trading hours in Moscow. The trading price the Russian rouble hit on that particular day was the worst performance it had delivered since July.
To be precise, the value of the rouble had hit a figure that was as low as the one it hit on July 6.
Rouble Recouped Some Ground
Although the trading price of the rouble hit such a low figure, it was able to earn back some of the losses it had incurred in the session.
The data shows that after a recoup, the loss of value the rouble had incurred against the dollar was 0.8%. Despite the dip, the rouble was able to rise back to a high of 64.53 before the session ended.
Rouble against the Euro and the Yuan
The value of the Russian rouble has hit an 11-week low versus the trading price of the euro. Although the dip was huge against the euro the rouble was able to recover from some of the losses.
Its price rose a bit to record a dip of 0.6%. On that particular day, the value of the Russian rouble ended its trading day at 68.73 versus the euro.
The value of the rouble did not perform well against the Chinese yuan either. The report shows that the value of the rouble moved downward against the yuan, exhibiting a low price of 9.25.
Russia has Practiced Strict Capital Controls
When Russia sent thousands of its troops into Ukraine, the situation got worse for the rouble.
It took a major hit as the country’s currency became the most despised in the entire west, especially the European region.
Right after the invasion, the value of the rouble hit an all-time low against the dollar. However, the country strengthened its capital control system to bring in stronger gains for the rouble.
This is the only way the Russian government has continued dealing with the economic downfalls. They have kept strict control of the capital, which has helped the rouble price.