Forex News

The Russian rouble falls to its lowest level against the euro in more than six months.

MOSCOW –Tuesday was the worst day for the Russian rouble against the euro since late May. Low oil prices and the possibility of less money from exports because of a price cap on Russian oil that went into effect this month hurt the rouble.

By 0732 GMT, the rouble had lost 0.9% to trade at 66.94 versus the euro, its weakest since May 30.

It fell against the dollar by 0.8%, to 63.31, and against the yuan by 0.9%, to 9.07.

Related: After the price ceiling on Russian crude and the OPEC+ summit, oil prices rose sharply.

In a note, Otkritie Research said, “The rouble has lost ground against all of its major rivals.”

“The sanctions theme continues to put pressure on the Russian currency.”

Russia’s economy and government finances are set to struggle under the weight of the European Union’s embargo on Russian oil exports and a $60-a-barrel price cap imposed by the G7, the European Union, and Australia.

Brent crude oil, which is the main export from Russia, was up 1.8% to $79.4 a barrel after hitting its lowest point of the year last week.

Investors are also keeping an eye on the Bank of Russia. According to a Reuters poll, the Bank of Russia is likely to keep its key interest rate at 7.5% on Friday as inflation continues to slow and as a way to figure out how the oil price cap and embargo might affect the economy.

This week, the markets are also waiting for a lot of interest rate decisions from the US Federal Reserve, the European Central Bank, and other places. Russian stock indexes were not all the same.

The RTS index, which is measured in dollars, went down 0.7% to 1,081.3 points.

Related: Russian relations are a challenge for America’s growing nuclear power sector. 

The MOEX Russian index, which is based on the rouble, stayed the same at 2,173.1 points.

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