Russian Ruble Weakens Past 96.4

The Russian ruble depreciated to 96.4 per USD, remaining over 30% down from its highest point this year, pressured by the recent geopolitical aggravation in the South Caucasus and the opening of financial markets which allowed firms and households to flee to foreign assets, magnifying the pressure from wide trade imbalances.

Stronger supply chains since the start of sanctions boosted imports, while the West’s oil embargo hurt essential energy exports, driving July’s trade surplus to sink by 77% from the prior year.

On the other hand, support for the currency came from CBR'S measures, particularly the selling of RUB 150 billion worth of foreign exchange in operations mirroring transactions from the Ministry of Finance and the lift of the interest rate to 13%.

Also, the markets continued to assess Fed's interest rate prospects, as softer stance could weaken the dollar, resulting in ruble relief.