Russian ruble plunges to 18-month low against US dollar

MOSCOW

Russian ruble plunged to a 18-month low against US dollar on Monday, exceeding 102 level.

According to data from the Moscow stock exchange, the ruble lost 1.7% to 102.1 per dollar, the lowest since March 2022.

Analysts said the fall was led by the ongoing Russia-Ukraine war besides the escalating conflict between Palestinian resistance group Hamas and Israel.

The ruble has decreased 40% since the beginning of 2023 amid a stronger dollar and unbalanced trade flows.

In September, Russia’s central bank hiked its key interest rate by 100 basis points to 13% to reduce the inflationary pressure on the economy.

In August, the Bank of Russia held an “unscheduled key rate meeting” and raised it by 350 basis points to 12% to support weakening ruble.