Rouble hesitant due to oil pricesJun 28th, 2011 | By admin | Category: Rouble News
The Russian rouble has witnessed some turbulence this week due to the fall in oil prices.
A drop of 0.6 per cent was recorded against the dollar at opening on Monday 27 June, with concern regarding the financial situation in Greece adding to the oil issue. By the end of the day, the US dollar bought 28.17 roubles; down from the month’s peak of 28.22 recorded at the close of play last week.
Trade with the euro has also been mixed, with the single currency purchasing 40 roubles on Monday. However, this has since risen in the single currency’s favour, with the euro buying 40.4 at 13:36BST on Tuesday afternoon. Trade against the US dollar also improved today, climbing back above the earlier peak to approach 28.3.
Russia has been enjoying a budget surplus over the course of the year thanks to its status as the world’s largest oil producer and rallying oil prices. These conditions have served to support a strong rouble, keeping import prices down for Russia.
Andrei Klepach, Deputy Economic Minister in Russia, told the Russian Economic and Financial forum in Strasbourg, “In the course of increasing rouble flexibility pledged by the central bank, and given the current account, the rouble’s potential to firm is great, despite capital account dynamics.”
However, given oil’s influence, the situation remains delicate as markets across the globe are becoming concerned with the International Energy Agency’s decision to release an extra 60 million barrels of oil in order to boost international economic activity.