Significant decline of the Russian ruble against the dollar

The Russian ruble fell once morest the dollar to its lowest level in more than three weeks in Moscow markets on Monday, as oil prices fell and following the Russian currency lost the support of a favorable tax collection period at the end of last month.
And at 0729 GMT, the ruble depreciated by 1.1% once morest the dollar and reached 62.30 rubles to the dollar, and it had earlier touched 62.4875. The Russian currency lost 1.9% of its value once morest the euro to 63.66.

High oil prices and a strong current account surplus halted some losses in the past week, but the ruble has so far lost regarding 7% of its value once morest the dollar.

“The ruble has been steadily weakening due to the end of the period of tax collection and profit taking,” said Dmitriy Polevoy, investment director at LukoInvest.

A few days ago, the period of paying taxes, which usually sees export companies transferring their foreign currency revenues to pay local dues, ended.

It is very possible that the ruble will soon weaken temporarily to between 63 and 65 once morest the dollar, Bolivoy said.