News Karnataka
Wednesday, April 24 2024
Business News

Russian rouble falls to its lowest value for a year

Photo Credit : IANS

London: The Russian rouble has fallen to its lowest value for a year, since shortly after Russia invaded Ukraine, according to a media report.

The currency slid to 82 roubles against the US dollar on the Moscow Stock Exchange (MOEX), BBC reported.

Russia has been hit with massive economic sanctions since it began an offensive in Ukraine in February 2022. Earlier this year, Russia had said its economy shrank by 2.1 per cent, far less than the 15 per cent fall that had been predicted, BBC reported.

The rouble also slid by 2 per cent to 90.06 against the euro on Friday morning.

Traders said the fall was linked to several factors, including lower oil prices in March cutting Russian revenue, and the sale of Western businesses in Russia in the wake of the invasion, BBC reported.

The rouble’s value has not slumped to this level since April 2022, though it was even lower in the immediate aftermath of the invasion, when it fell to 113 roubles per US dollar. The currency stabilised in July to reach 50 roubles – but it has weakened again since then.

President Vladimir Putin had insisted that the economy was standing strong against economic sanctions, but last week he admitted that the penalties could have a negative effect on Russia, BBC reported.

Russia’s Finance Minister Anton Siluanov said the latest fall was linked to changes to imports and exports to the country.

He added that the exchange rate fluctuated with “the conditions of changing foreign economic conditions”.

Asked if people in the country should be concerned, he said the rouble is likely to strengthen thanks to the continued sales of Russian energy on the global market, BBC reported.

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