Rouble Recovers After Hitting 8-Month Low vs. Dollar on Sanctions Fears

The Russian rouble pared losses to gain on Thursday after slumping to an eight-month low against the dollar in early trade, struggling under the weight of expectations that sanctions on Russian oil and gas may limit export revenues, Reuters reported. Despite recovering ground in another volatile session, the rouble has still lost more than 13% to the dollar since a Western price cap on Russian oil exports came into force on Dec. 5. By 0957 GMT, the rouble was 0.8% stronger against the dollar at 71.64 , having earlier touched 72.9175, its weakest since April 27. It gained 0.6% to trade at 75.95 against the euro and firmed 0.6% against the yuan to 10.31 , earlier touching a seven-month low of 10.326. The rouble has now lost the key support of a month-end tax period that usually sees exporters convert foreign currency revenues into roubles to pay domestic liabilities, while recovering imports have combined with falling exports to add more pressure. President Vladimir Putin last week delivered Russia's long-awaited response to the price cap, signing a decree that bans the supply of crude oil and oil products from Feb. 1 for five months to nations that abide by it. Read more.