Russian rouble stays above 100 to dollar on geopolitical risks
MOSCOW, Nov 20 (Reuters) -The Russian rouble held above the 100 mark against the U.S. dollar on Wednesday amid concerns of further escalation in Russia's standoff with the West.
At 0730 GMT, the rouble RUB= stood at 100.25 against the dollar, after weakening 0.8% to 100.57 in the previous session. The Russian currency was at 105.62 to the euro EURRUB=, up from Friday's closing level of 106.57.
It was down 0.2% against the yuan at 13.85 in trade on the Moscow stock exchange.
"The rouble has resumed weakening amid (a) tense geopolitical situation," BCS analysts said, predicting the currency could weaken further in the short term.
The rouble has been falling since the start of Ukraine's incursion into Russia's Kursk region on Aug. 6 and has lost nearly 19% in value to the dollar since then, according to LSEG data.
The official exchange rate weakened past 100 to the dollar on Tuesday for the first time since October 2023 after President Vladimir Putin lowered the nuclear strike threshold in escalating tensions with the United States over Ukraine.
Western sanctions imposed on the Moscow Exchange (MOEX) and its clearing agent, the National Clearing Centre, on June 12 stopped all trade in dollars and euros at MOEX.
The central bank sets its official dollar rate using over-the-counter (OTC) trade data from banks. This makes the exchange rate opaque and volatile. The central bank set the rouble exchange rate at 100.03 to the dollar on Nov. 19.
Brent crude oil LCOc1, a global benchmark for Russia's main export, was steady at $73.41 as concerns about escalating hostilities in the Ukraine war and signs of growing Chinese crude imports offset data showing U.S. crude stocks rising.
One-day rouble-dollar futures, which trade on the Moscow exchange and are a guide for OTC market rates, were up 0.1% at 100.48, suggesting that the rouble is likely to be above the 100 mark in the next session as well.
Reporting by Gleb Bryanski
Editing by Mark Potter
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