By Alexander Marrow
(Reuters) -The Russian rouble slumped to a more than 15-month low against the dollar and euro on Friday, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend and lacking support drivers.
By 0734 GMT, the rouble was 0.8% weaker against the dollar at 88.26 after earlier hitting 88.6775, its weakest point since March 29, 2022.
It lost 0.9% to trade at 95.97 versus the euro after also hitting a 15-month low of 96.3225. It shed 0.7% against the yuan to 12.15, earlier clipping a more than 14-month low.
“The rouble continues to crumble,” Alor Broker said in a note. “It lost another 1.4% in value yesterday, despite stabilising oil.
“The target for the dollar-rouble pair of 90 is approaching and is likely to be reached.”
Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin’s aborted weekend march toward Moscow reverberated through markets and left questions over President Vladimir Putin’s grip on power.
The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed.
, a global benchmark for Russia’s main export, was up 0.4% at $74.70 a barrel.
Russian stock indexes were lower.
The dollar-denominated RTS index was down 1.3% to 994.2 points. The rouble-based MOEX Russian index was 0.4% lower at 2,785.8 points.
Shares in Gazprom (MCX:) dropped about 0.7% after the energy giant’s shareholders approved the board’s recommendation against paying full-year 2022 dividends after allocating a half-year dividend of 1.2 trillion roubles ($13.6 billion).
($1 = 88.2200 roubles)
Read the full article here