U.S. Dollar Drops Below 78 Mark for First Time Since May 2023's Record.
As of 11:18 AM Moscow time, the dollar's exchange rate on the Russian interbank market saw a significant drop, descending by 2.54% to 77.875 rubles. The currency's value reached its lowest point at 11:35 AM, dipping to 77.825 rubles. By 13:10, the dollar's decline had slowed, with the rate standing at 78.48 rubles, representing a decrease of 1.79%.
During the same period, the euro also experienced a drop in value. By 11:22 AM, the euro was trading below 88 rubles for the first time since June 12, 2023. The currency's value fell to 87.848 rubles (-2.08%). By 11:47 AM, the euro had risen slightly to 88.8 rubles, marking a decrease of 1.01%. At 13:10, the euro was at 88.54 rubles, demonstrating a drop of 1.31%.
According to PSB, the stabilization of the ruble was driven by an improvement in the geopolitical situation and positive developments on the oil market. The bank's head of economic and sectoral analysis, Yevgeny Loktyukhov, stated that the traditional post-tax period supply reduction would be offset by increased speculative currency sales due to the improved geopolitical situation and oil market conditions.
In general, exchange rates can be influenced by various factors, including economic indicators, geopolitical events, speculative activities, and central bank actions. When a currency experiences increased volatility due to speculative sales, it can stabilize through central bank intervention, capital controls, monetary policy adjustments, or economic policy implementations designed to boost growth and reduce inflation. In this case, the Central Bank of Russia may have intervened in the market by buying rubles to increase demand and stabilize its value.
Within the banking-and-insurance industry, Yevgeny Loktyukhov, head of economic and sectoral analysis at PSB, suggested that the stabilization of the ruble could be due to increased speculative currency sales in the finance sector, driven by improved geopolitical situation and oil market conditions. After a significant drop, the dollar's exchange rate, influenced by economic indicators and speculative activities, may have been supported by central bank actions, potentially including intervention to buy rubles and increase demand.
