Rouble hits nine-month lowSep 20th, 2011 | By Caroline Clayfield | Category: Rouble News
The Russian rouble hit a nine-month low against the US dollar yesterday (Monday, 19 September) as oil prices suffered.
By midday, the currency was also struggling against the euro-dollar basket after weakening 1.7 per cent to 36.37, Reuters reported. In addition to weak oil prices, capital investment cap in slightly below analysts' forecasts, which may also have played a role in the rouble's troubles.
However, retail sales, housing completions and wages all beat their forecasted growth, although the coin remains in the range within which the central bank could intervene by selling foreign currency.
Maxim Oreshkin, analyst with Credit Agricole, told the news agency: “The forecast-beating data showed strong domestic demand, which is actually a negative sign for the rouble, as it means imports are growing, limiting Russia's capital inflows.”
He added that the international markets in general are witnessing a “common negative mood” due to declines in oil prices and a number of investors pulling out of risky assets. If Russian households were to start buying foreign currencies in this climate, the rouble “may weaken further”.
The remarks follow a number of weeks of extended losses for the rouble as political uncertainty has gripped trading.