×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russia's Ruble Opens Weak as Oil Price Drops

Russian rubles and kopecks coins are pictured in a handmade casket made from birch bark in Krasnoyarsk, Siberia. Ilya Naymushin / Reuters

The Russian ruble opened 1.8 percent weaker against the dollar on Tuesday pressured by a continuing decline in the oil price and fears that agency Standard & Poor's could downgrade the country's rating in coming days.

The Russian currency tracked international oil benchmark Brent, which was down 4 percent on Tuesday morning to a nearly six-year low of $45.50 per barrel.

At 0708 GMT, the ruble was 1.8 percent down against the dollar at 64.34 rubles and 2 percent weaker against the euro at 76.25.

S&P said last month it expected to complete a review of Russia, which it already rates at just one notch above junk with a negative outlook, by mid-January.

ING analyst Dmitry Polevoy said in a note that the ruble could expect support later in the month from revenue sales by exporters which should start to pay taxes after Jan. 15.

But he added that without a rise in oil price it was likely to continue weakening in the short term to 65 rubles a dollar.

The ruble could also be supported by lower foreign-currency debt payments, estimated at less than $7.5 billion in January, down from $33 billion in December.

Russian stock indexes also fell: the ruble-based MICEX index was down 0.4 percent at 1,507 points, while the dollar-based RTS was down 2.55 percent at 737 points.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more