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The Russian rouble fell past the psychologically key 100 per U.S. dollar on Monday.
President Vladimir Putin’s economic advisor said Russia was interested in a strong rouble and that loose monetary policy was the main reason behind the currency’s weakening.
PIOTR MATYS, SENIOR FX ANALYST, IN TOUCH CAPITAL MARKETS, POLAND.
“The rouble remains under the selling pressure in the current global environment dominated by concerns about China, which is Russia’s most important trading partner.”
“The sharp fall in Russia’s current account surplus leaves the rouble more vulnerable to global sentiment. The CBR (Russian central bank) may have to raise interest rates further to cool down domestic demand and slow down imports to stabilize the rouble.”
Compiled by Dhara Ranasinghe, editing by Ed Osmond
