financetom
Business
financetom
/
Business
/
Rouble falls on low liquid interbank market after new US sanctions
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Rouble falls on low liquid interbank market after new US sanctions
Jun 13, 2024 12:01 AM

MOSCOW, June 13 (Reuters) - The rouble fell to a near

three-week low against the dollar on the interbank market on

Thursday, albeit amid very low liquidity in pre-market trading,

after new U.S. sanctions on Russia forced the Moscow Exchange to

halt dollar and euro trading.

The unusual situation means access to reliable dollar-rouble

bid and ask prices is difficult to come by, as trading moves

exclusively to the over-the-counter (OTC) market. The central

bank will publish the official daily rate closer to 1400 GMT.

The dollar's previous close, on the eve of Wednesday's

national holiday, was 89.10 to the dollar. On the

interbank market, it reached as low as 91.4955 as some

banks took speculative positions ahead of the official launch of

bids.

New U.S. sanctions against Russia on Wednesday forced an

immediate suspension of trading in dollars and euros on its

leading financial marketplace, the Moscow Exchange.

The exchange and the central bank rushed out statements on

Wednesday within an hour of Washington announcing the new

sanctions aimed at cutting the flow of money and goods to

sustain Russia's war in Ukraine.

The central bank also suspended trading in the Hong Kong

dollar, which is pegged to the U.S. dollar, but was overall keen

to downplay the possible impact of sanctions.

"Over the past two years, the role of the US dollar and

the euro in the Russian market has been consistently declining,"

the central bank said on Thursday.

Banks, companies and investors will no longer be able to

trade either currency via the central exchange, which offers

advantages in terms of liquidity, clearing and oversight.

Instead, they will trade OTC, where deals are conducted

directly between two parties.

The central bank said dollar and euro turnover on the

OTC market had long exceeded their transaction volumes on MOEX.

"The new sanctions should not affect the rouble rate in the

medium term," said Yuri Popov, SberCIB Investment Research

strategist. "In the short term there may be high volatility and

wide spreads at exchange counters."

Major brokers have also blocked accounts in dollars, euros

and Hong Kong dollars, with deposits and withdrawals

unavailable.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved