Russians feel the pinch as rouble tumbles past 91 vs dollar
Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin's aborted march toward Moscow on June 24 has reverberated through markets and raised questions about President Vladimir Putin's grip on power. By 1315 GMT, the rouble was 1.7% weaker against the dollar at 90.54, earlier hitting 91.0675, its weakest point since March 28, 2022. It lost 1.6% to trade at 98.76 versus the euro, earlier passing the 99 mark for the first time in more than 15 months, and shed 1.2% against the yuan to 12.49, a more than 14-month low.
«Sanctions are having their effect,» Karen, a bank employee, told Reuters, saying price increases were particularly noticeable with imported goods. Moscow resident Galina said the rouble's weakening was noticeable in all price categories. «You go into a shop, the prices have gone up,» she told Reuters.
«It's not pleasing, I want stability.» The rouble lost more than 9% in June and is down around 20% so far this year, making it one of the world's worst performing currencies. It is now trading outside the 80-90 range that First Deputy Prime Minister Andrei Belousov said last month was preferable. SUPPLY-DEMAND IMBALANCE Analysts polled by Reuters last week expect the Bank of Russia to raise interest rates in July and again later in the year as inflationary pressure intensifies, and see limited room for the rouble to strengthen in the coming 12 months.
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